Chapter Marketing Communications & PROMOTIONAL MIX 4.01.
Post on 02-Jan-2016
222 Views
Preview:
Transcript
chap
ter
Marketing Communications amp Marketing Communications amp PROMOTIONAL MIXPROMOTIONAL MIX
401401
Chapter Version 3e 2copy2003 South-Western
10 Year Old Statistics10 Year Old Statistics
US advertising spending exceeds $215 billion per year
Industry employs only 272000
Ad budgets of some firms exceed over $2 billion per year
11
Chapter Version 3e 3copy2003 South-Western
Advertising and Market ShareAdvertising and Market Share
New brands spend proportionately more for advertising than old ones
A certain level of exposure is needed to affect purchase habits
Beyond a certain level diminishing returns set in
11
Chapter Version 3e 4copy2003 South-Western
Advertising and the ConsumerAdvertising and the Consumer
Average US citizen is exposed to hundreds of ads each day
Advertising may change a consumerrsquos attitude toward a product
Advertising can affect consumer ranking of brand attributes
11
Chapter Version 3e 5copy2003 South-Western
Promotional MixPromotional Mix
Chapter Version 3e 6copy2003 South-Western
What is promotionWhat is promotion
Any form of communication a business or organization uses to inform persuade or remind people about its products
Chapter Version 3e 7copy2003 South-Western
The The Promotional MixPromotional Mix is a combination is a combination of the different types of promotionof the different types of promotion
Chapter Version 3e 8copy2003 South-Western
Elements of the Promotion MixElements of the Promotion Mix
Advertising
Ingredientsof the
PromotionMix
Ingredientsof the
PromotionMix
Public Relations
Personal Selling
Sales Promotion
Chapter Version 3e 9copy2003 South-Western
What is promotionWhat is promotion
There are two forms of promotionndash Productndash Institutional
It is important to our economyBillions of dollars are spent on
promotion and promotion activities provide millions of people with jobs
Chapter Version 3e 10copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising
Corporate Image
Advocacy Advertising
Typesof
Advertising
Typesof
AdvertisingPioneering
Competitive
Comparative
ProductAdvertising
InstitutionalAdvertising
Chapter Version 3e 11copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising
InstitutionalAdvertisingInstitutionalAdvertising
Designed to enhance a companyrsquos image rather than promote a
particular product
Designed to enhance a companyrsquos image rather than promote a
particular product
ProductAdvertising
ProductAdvertising
Designed to tout the benefits of a specific good or service
Designed to tout the benefits of a specific good or service
22
Chapter Version 3e 12copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising22
Enhance corporationrsquos identify
Enhance corporationrsquos identify
PioneeringPioneering
CompetitiveCompetitive
ComparativeComparative
ProductProductAdvertisingAdvertising
ProductProductAdvertisingAdvertising
InstitutionalInstitutionalAdvertisingAdvertisingInstitutionalInstitutionalAdvertisingAdvertising
Advocacy advertisingAdvocacy advertising
Chapter Version 3e 13copy2003 South-Western
Product AdvertisingProduct Advertising
PioneeringPioneeringPioneeringPioneeringbull Stimulates primary demand for
new product or category
CompetitiveCompetitiveCompetitiveCompetitivebull Influence demand for brand in the
growth phase of the PLC bull Often uses emotional appeal
ComparativeComparativeComparativeComparativebull Compares two or more competing
brandsrsquo product attributes bull Used if growth is sluggish or if
competition is strong
22
Chapter Version 3e 14copy2003 South-Western
The Role of PromotionThe Role of Promotion
Promotion- any form of communication a business or organization uses to inform persuade or remind people about its products and improve its public images
Product promotion - used to convince potential customers to buy products from it instead of from a competitorndash Explains major features and benefits of its productsndash Tells where those products are soldndash Advertises sales on those productsndash Answers customer questionsndash Introduces new products
Chapter Version 3e 15copy2003 South-Western
The Role of PromotionThe Role of Promotion
Institutional Promotion- used to create a favorable image for itself Does not directly sell a certain product However may ultimately result in increased sales of a companyrsquos products
Chapter Version 3e 16copy2003 South-Western
TypesTypes ofof PromotionPromotion
AdvertisingPublicitySales PromotionPersonal Selling
Chapter Version 3e 17copy2003 South-Western
AdvertisingAdvertising
It is paid forOne set format to carry a
message rather than a personal one-on-one message
Identifies the sponsor of the message
Chapter Version 3e 18copy2003 South-Western
AdvertisinghellipAdvertisinghellip
Any paid form of non-personal presentation and promotion of ideas goods or services by an identified sponsor
Advertis
e here
Chapter Version 3e 19copy2003 South-Western
PublicityPublicity
Builds a businessrsquo imagePublicity is freeNot much control over the
message being sent to the public
Chapter Version 3e 20copy2003 South-Western
A specific kind of public relations that involves placing positive and newsworthy information about a business its products or its policies in the media is calledhellip
Publicity
Chapter Version 3e 21copy2003 South-Western
PublicityPublicity
Advantagehellipndash It is free
Disadvantagehellipndash Its contents
cannot be controlled by the business
Chapter Version 3e 22copy2003 South-Western
Principal function of publicityhellipPrincipal function of publicityhellip
Building an image
Chapter Version 3e 23copy2003 South-Western
Public RelationsPublic Relations
Any activity designed to create a favorable image toward a business its products or its policies
Chapter Version 3e 24copy2003 South-Western
Sales PromotionSales Promotion
Usually involves short term activities
Offers some type of incentive to make a purchase
Can be successfully used in all channels of distribution
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 2copy2003 South-Western
10 Year Old Statistics10 Year Old Statistics
US advertising spending exceeds $215 billion per year
Industry employs only 272000
Ad budgets of some firms exceed over $2 billion per year
11
Chapter Version 3e 3copy2003 South-Western
Advertising and Market ShareAdvertising and Market Share
New brands spend proportionately more for advertising than old ones
A certain level of exposure is needed to affect purchase habits
Beyond a certain level diminishing returns set in
11
Chapter Version 3e 4copy2003 South-Western
Advertising and the ConsumerAdvertising and the Consumer
Average US citizen is exposed to hundreds of ads each day
Advertising may change a consumerrsquos attitude toward a product
Advertising can affect consumer ranking of brand attributes
11
Chapter Version 3e 5copy2003 South-Western
Promotional MixPromotional Mix
Chapter Version 3e 6copy2003 South-Western
What is promotionWhat is promotion
Any form of communication a business or organization uses to inform persuade or remind people about its products
Chapter Version 3e 7copy2003 South-Western
The The Promotional MixPromotional Mix is a combination is a combination of the different types of promotionof the different types of promotion
Chapter Version 3e 8copy2003 South-Western
Elements of the Promotion MixElements of the Promotion Mix
Advertising
Ingredientsof the
PromotionMix
Ingredientsof the
PromotionMix
Public Relations
Personal Selling
Sales Promotion
Chapter Version 3e 9copy2003 South-Western
What is promotionWhat is promotion
There are two forms of promotionndash Productndash Institutional
It is important to our economyBillions of dollars are spent on
promotion and promotion activities provide millions of people with jobs
Chapter Version 3e 10copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising
Corporate Image
Advocacy Advertising
Typesof
Advertising
Typesof
AdvertisingPioneering
Competitive
Comparative
ProductAdvertising
InstitutionalAdvertising
Chapter Version 3e 11copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising
InstitutionalAdvertisingInstitutionalAdvertising
Designed to enhance a companyrsquos image rather than promote a
particular product
Designed to enhance a companyrsquos image rather than promote a
particular product
ProductAdvertising
ProductAdvertising
Designed to tout the benefits of a specific good or service
Designed to tout the benefits of a specific good or service
22
Chapter Version 3e 12copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising22
Enhance corporationrsquos identify
Enhance corporationrsquos identify
PioneeringPioneering
CompetitiveCompetitive
ComparativeComparative
ProductProductAdvertisingAdvertising
ProductProductAdvertisingAdvertising
InstitutionalInstitutionalAdvertisingAdvertisingInstitutionalInstitutionalAdvertisingAdvertising
Advocacy advertisingAdvocacy advertising
Chapter Version 3e 13copy2003 South-Western
Product AdvertisingProduct Advertising
PioneeringPioneeringPioneeringPioneeringbull Stimulates primary demand for
new product or category
CompetitiveCompetitiveCompetitiveCompetitivebull Influence demand for brand in the
growth phase of the PLC bull Often uses emotional appeal
ComparativeComparativeComparativeComparativebull Compares two or more competing
brandsrsquo product attributes bull Used if growth is sluggish or if
competition is strong
22
Chapter Version 3e 14copy2003 South-Western
The Role of PromotionThe Role of Promotion
Promotion- any form of communication a business or organization uses to inform persuade or remind people about its products and improve its public images
Product promotion - used to convince potential customers to buy products from it instead of from a competitorndash Explains major features and benefits of its productsndash Tells where those products are soldndash Advertises sales on those productsndash Answers customer questionsndash Introduces new products
Chapter Version 3e 15copy2003 South-Western
The Role of PromotionThe Role of Promotion
Institutional Promotion- used to create a favorable image for itself Does not directly sell a certain product However may ultimately result in increased sales of a companyrsquos products
Chapter Version 3e 16copy2003 South-Western
TypesTypes ofof PromotionPromotion
AdvertisingPublicitySales PromotionPersonal Selling
Chapter Version 3e 17copy2003 South-Western
AdvertisingAdvertising
It is paid forOne set format to carry a
message rather than a personal one-on-one message
Identifies the sponsor of the message
Chapter Version 3e 18copy2003 South-Western
AdvertisinghellipAdvertisinghellip
Any paid form of non-personal presentation and promotion of ideas goods or services by an identified sponsor
Advertis
e here
Chapter Version 3e 19copy2003 South-Western
PublicityPublicity
Builds a businessrsquo imagePublicity is freeNot much control over the
message being sent to the public
Chapter Version 3e 20copy2003 South-Western
A specific kind of public relations that involves placing positive and newsworthy information about a business its products or its policies in the media is calledhellip
Publicity
Chapter Version 3e 21copy2003 South-Western
PublicityPublicity
Advantagehellipndash It is free
Disadvantagehellipndash Its contents
cannot be controlled by the business
Chapter Version 3e 22copy2003 South-Western
Principal function of publicityhellipPrincipal function of publicityhellip
Building an image
Chapter Version 3e 23copy2003 South-Western
Public RelationsPublic Relations
Any activity designed to create a favorable image toward a business its products or its policies
Chapter Version 3e 24copy2003 South-Western
Sales PromotionSales Promotion
Usually involves short term activities
Offers some type of incentive to make a purchase
Can be successfully used in all channels of distribution
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 3copy2003 South-Western
Advertising and Market ShareAdvertising and Market Share
New brands spend proportionately more for advertising than old ones
A certain level of exposure is needed to affect purchase habits
Beyond a certain level diminishing returns set in
11
Chapter Version 3e 4copy2003 South-Western
Advertising and the ConsumerAdvertising and the Consumer
Average US citizen is exposed to hundreds of ads each day
Advertising may change a consumerrsquos attitude toward a product
Advertising can affect consumer ranking of brand attributes
11
Chapter Version 3e 5copy2003 South-Western
Promotional MixPromotional Mix
Chapter Version 3e 6copy2003 South-Western
What is promotionWhat is promotion
Any form of communication a business or organization uses to inform persuade or remind people about its products
Chapter Version 3e 7copy2003 South-Western
The The Promotional MixPromotional Mix is a combination is a combination of the different types of promotionof the different types of promotion
Chapter Version 3e 8copy2003 South-Western
Elements of the Promotion MixElements of the Promotion Mix
Advertising
Ingredientsof the
PromotionMix
Ingredientsof the
PromotionMix
Public Relations
Personal Selling
Sales Promotion
Chapter Version 3e 9copy2003 South-Western
What is promotionWhat is promotion
There are two forms of promotionndash Productndash Institutional
It is important to our economyBillions of dollars are spent on
promotion and promotion activities provide millions of people with jobs
Chapter Version 3e 10copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising
Corporate Image
Advocacy Advertising
Typesof
Advertising
Typesof
AdvertisingPioneering
Competitive
Comparative
ProductAdvertising
InstitutionalAdvertising
Chapter Version 3e 11copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising
InstitutionalAdvertisingInstitutionalAdvertising
Designed to enhance a companyrsquos image rather than promote a
particular product
Designed to enhance a companyrsquos image rather than promote a
particular product
ProductAdvertising
ProductAdvertising
Designed to tout the benefits of a specific good or service
Designed to tout the benefits of a specific good or service
22
Chapter Version 3e 12copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising22
Enhance corporationrsquos identify
Enhance corporationrsquos identify
PioneeringPioneering
CompetitiveCompetitive
ComparativeComparative
ProductProductAdvertisingAdvertising
ProductProductAdvertisingAdvertising
InstitutionalInstitutionalAdvertisingAdvertisingInstitutionalInstitutionalAdvertisingAdvertising
Advocacy advertisingAdvocacy advertising
Chapter Version 3e 13copy2003 South-Western
Product AdvertisingProduct Advertising
PioneeringPioneeringPioneeringPioneeringbull Stimulates primary demand for
new product or category
CompetitiveCompetitiveCompetitiveCompetitivebull Influence demand for brand in the
growth phase of the PLC bull Often uses emotional appeal
ComparativeComparativeComparativeComparativebull Compares two or more competing
brandsrsquo product attributes bull Used if growth is sluggish or if
competition is strong
22
Chapter Version 3e 14copy2003 South-Western
The Role of PromotionThe Role of Promotion
Promotion- any form of communication a business or organization uses to inform persuade or remind people about its products and improve its public images
Product promotion - used to convince potential customers to buy products from it instead of from a competitorndash Explains major features and benefits of its productsndash Tells where those products are soldndash Advertises sales on those productsndash Answers customer questionsndash Introduces new products
Chapter Version 3e 15copy2003 South-Western
The Role of PromotionThe Role of Promotion
Institutional Promotion- used to create a favorable image for itself Does not directly sell a certain product However may ultimately result in increased sales of a companyrsquos products
Chapter Version 3e 16copy2003 South-Western
TypesTypes ofof PromotionPromotion
AdvertisingPublicitySales PromotionPersonal Selling
Chapter Version 3e 17copy2003 South-Western
AdvertisingAdvertising
It is paid forOne set format to carry a
message rather than a personal one-on-one message
Identifies the sponsor of the message
Chapter Version 3e 18copy2003 South-Western
AdvertisinghellipAdvertisinghellip
Any paid form of non-personal presentation and promotion of ideas goods or services by an identified sponsor
Advertis
e here
Chapter Version 3e 19copy2003 South-Western
PublicityPublicity
Builds a businessrsquo imagePublicity is freeNot much control over the
message being sent to the public
Chapter Version 3e 20copy2003 South-Western
A specific kind of public relations that involves placing positive and newsworthy information about a business its products or its policies in the media is calledhellip
Publicity
Chapter Version 3e 21copy2003 South-Western
PublicityPublicity
Advantagehellipndash It is free
Disadvantagehellipndash Its contents
cannot be controlled by the business
Chapter Version 3e 22copy2003 South-Western
Principal function of publicityhellipPrincipal function of publicityhellip
Building an image
Chapter Version 3e 23copy2003 South-Western
Public RelationsPublic Relations
Any activity designed to create a favorable image toward a business its products or its policies
Chapter Version 3e 24copy2003 South-Western
Sales PromotionSales Promotion
Usually involves short term activities
Offers some type of incentive to make a purchase
Can be successfully used in all channels of distribution
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 4copy2003 South-Western
Advertising and the ConsumerAdvertising and the Consumer
Average US citizen is exposed to hundreds of ads each day
Advertising may change a consumerrsquos attitude toward a product
Advertising can affect consumer ranking of brand attributes
11
Chapter Version 3e 5copy2003 South-Western
Promotional MixPromotional Mix
Chapter Version 3e 6copy2003 South-Western
What is promotionWhat is promotion
Any form of communication a business or organization uses to inform persuade or remind people about its products
Chapter Version 3e 7copy2003 South-Western
The The Promotional MixPromotional Mix is a combination is a combination of the different types of promotionof the different types of promotion
Chapter Version 3e 8copy2003 South-Western
Elements of the Promotion MixElements of the Promotion Mix
Advertising
Ingredientsof the
PromotionMix
Ingredientsof the
PromotionMix
Public Relations
Personal Selling
Sales Promotion
Chapter Version 3e 9copy2003 South-Western
What is promotionWhat is promotion
There are two forms of promotionndash Productndash Institutional
It is important to our economyBillions of dollars are spent on
promotion and promotion activities provide millions of people with jobs
Chapter Version 3e 10copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising
Corporate Image
Advocacy Advertising
Typesof
Advertising
Typesof
AdvertisingPioneering
Competitive
Comparative
ProductAdvertising
InstitutionalAdvertising
Chapter Version 3e 11copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising
InstitutionalAdvertisingInstitutionalAdvertising
Designed to enhance a companyrsquos image rather than promote a
particular product
Designed to enhance a companyrsquos image rather than promote a
particular product
ProductAdvertising
ProductAdvertising
Designed to tout the benefits of a specific good or service
Designed to tout the benefits of a specific good or service
22
Chapter Version 3e 12copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising22
Enhance corporationrsquos identify
Enhance corporationrsquos identify
PioneeringPioneering
CompetitiveCompetitive
ComparativeComparative
ProductProductAdvertisingAdvertising
ProductProductAdvertisingAdvertising
InstitutionalInstitutionalAdvertisingAdvertisingInstitutionalInstitutionalAdvertisingAdvertising
Advocacy advertisingAdvocacy advertising
Chapter Version 3e 13copy2003 South-Western
Product AdvertisingProduct Advertising
PioneeringPioneeringPioneeringPioneeringbull Stimulates primary demand for
new product or category
CompetitiveCompetitiveCompetitiveCompetitivebull Influence demand for brand in the
growth phase of the PLC bull Often uses emotional appeal
ComparativeComparativeComparativeComparativebull Compares two or more competing
brandsrsquo product attributes bull Used if growth is sluggish or if
competition is strong
22
Chapter Version 3e 14copy2003 South-Western
The Role of PromotionThe Role of Promotion
Promotion- any form of communication a business or organization uses to inform persuade or remind people about its products and improve its public images
Product promotion - used to convince potential customers to buy products from it instead of from a competitorndash Explains major features and benefits of its productsndash Tells where those products are soldndash Advertises sales on those productsndash Answers customer questionsndash Introduces new products
Chapter Version 3e 15copy2003 South-Western
The Role of PromotionThe Role of Promotion
Institutional Promotion- used to create a favorable image for itself Does not directly sell a certain product However may ultimately result in increased sales of a companyrsquos products
Chapter Version 3e 16copy2003 South-Western
TypesTypes ofof PromotionPromotion
AdvertisingPublicitySales PromotionPersonal Selling
Chapter Version 3e 17copy2003 South-Western
AdvertisingAdvertising
It is paid forOne set format to carry a
message rather than a personal one-on-one message
Identifies the sponsor of the message
Chapter Version 3e 18copy2003 South-Western
AdvertisinghellipAdvertisinghellip
Any paid form of non-personal presentation and promotion of ideas goods or services by an identified sponsor
Advertis
e here
Chapter Version 3e 19copy2003 South-Western
PublicityPublicity
Builds a businessrsquo imagePublicity is freeNot much control over the
message being sent to the public
Chapter Version 3e 20copy2003 South-Western
A specific kind of public relations that involves placing positive and newsworthy information about a business its products or its policies in the media is calledhellip
Publicity
Chapter Version 3e 21copy2003 South-Western
PublicityPublicity
Advantagehellipndash It is free
Disadvantagehellipndash Its contents
cannot be controlled by the business
Chapter Version 3e 22copy2003 South-Western
Principal function of publicityhellipPrincipal function of publicityhellip
Building an image
Chapter Version 3e 23copy2003 South-Western
Public RelationsPublic Relations
Any activity designed to create a favorable image toward a business its products or its policies
Chapter Version 3e 24copy2003 South-Western
Sales PromotionSales Promotion
Usually involves short term activities
Offers some type of incentive to make a purchase
Can be successfully used in all channels of distribution
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 5copy2003 South-Western
Promotional MixPromotional Mix
Chapter Version 3e 6copy2003 South-Western
What is promotionWhat is promotion
Any form of communication a business or organization uses to inform persuade or remind people about its products
Chapter Version 3e 7copy2003 South-Western
The The Promotional MixPromotional Mix is a combination is a combination of the different types of promotionof the different types of promotion
Chapter Version 3e 8copy2003 South-Western
Elements of the Promotion MixElements of the Promotion Mix
Advertising
Ingredientsof the
PromotionMix
Ingredientsof the
PromotionMix
Public Relations
Personal Selling
Sales Promotion
Chapter Version 3e 9copy2003 South-Western
What is promotionWhat is promotion
There are two forms of promotionndash Productndash Institutional
It is important to our economyBillions of dollars are spent on
promotion and promotion activities provide millions of people with jobs
Chapter Version 3e 10copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising
Corporate Image
Advocacy Advertising
Typesof
Advertising
Typesof
AdvertisingPioneering
Competitive
Comparative
ProductAdvertising
InstitutionalAdvertising
Chapter Version 3e 11copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising
InstitutionalAdvertisingInstitutionalAdvertising
Designed to enhance a companyrsquos image rather than promote a
particular product
Designed to enhance a companyrsquos image rather than promote a
particular product
ProductAdvertising
ProductAdvertising
Designed to tout the benefits of a specific good or service
Designed to tout the benefits of a specific good or service
22
Chapter Version 3e 12copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising22
Enhance corporationrsquos identify
Enhance corporationrsquos identify
PioneeringPioneering
CompetitiveCompetitive
ComparativeComparative
ProductProductAdvertisingAdvertising
ProductProductAdvertisingAdvertising
InstitutionalInstitutionalAdvertisingAdvertisingInstitutionalInstitutionalAdvertisingAdvertising
Advocacy advertisingAdvocacy advertising
Chapter Version 3e 13copy2003 South-Western
Product AdvertisingProduct Advertising
PioneeringPioneeringPioneeringPioneeringbull Stimulates primary demand for
new product or category
CompetitiveCompetitiveCompetitiveCompetitivebull Influence demand for brand in the
growth phase of the PLC bull Often uses emotional appeal
ComparativeComparativeComparativeComparativebull Compares two or more competing
brandsrsquo product attributes bull Used if growth is sluggish or if
competition is strong
22
Chapter Version 3e 14copy2003 South-Western
The Role of PromotionThe Role of Promotion
Promotion- any form of communication a business or organization uses to inform persuade or remind people about its products and improve its public images
Product promotion - used to convince potential customers to buy products from it instead of from a competitorndash Explains major features and benefits of its productsndash Tells where those products are soldndash Advertises sales on those productsndash Answers customer questionsndash Introduces new products
Chapter Version 3e 15copy2003 South-Western
The Role of PromotionThe Role of Promotion
Institutional Promotion- used to create a favorable image for itself Does not directly sell a certain product However may ultimately result in increased sales of a companyrsquos products
Chapter Version 3e 16copy2003 South-Western
TypesTypes ofof PromotionPromotion
AdvertisingPublicitySales PromotionPersonal Selling
Chapter Version 3e 17copy2003 South-Western
AdvertisingAdvertising
It is paid forOne set format to carry a
message rather than a personal one-on-one message
Identifies the sponsor of the message
Chapter Version 3e 18copy2003 South-Western
AdvertisinghellipAdvertisinghellip
Any paid form of non-personal presentation and promotion of ideas goods or services by an identified sponsor
Advertis
e here
Chapter Version 3e 19copy2003 South-Western
PublicityPublicity
Builds a businessrsquo imagePublicity is freeNot much control over the
message being sent to the public
Chapter Version 3e 20copy2003 South-Western
A specific kind of public relations that involves placing positive and newsworthy information about a business its products or its policies in the media is calledhellip
Publicity
Chapter Version 3e 21copy2003 South-Western
PublicityPublicity
Advantagehellipndash It is free
Disadvantagehellipndash Its contents
cannot be controlled by the business
Chapter Version 3e 22copy2003 South-Western
Principal function of publicityhellipPrincipal function of publicityhellip
Building an image
Chapter Version 3e 23copy2003 South-Western
Public RelationsPublic Relations
Any activity designed to create a favorable image toward a business its products or its policies
Chapter Version 3e 24copy2003 South-Western
Sales PromotionSales Promotion
Usually involves short term activities
Offers some type of incentive to make a purchase
Can be successfully used in all channels of distribution
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 6copy2003 South-Western
What is promotionWhat is promotion
Any form of communication a business or organization uses to inform persuade or remind people about its products
Chapter Version 3e 7copy2003 South-Western
The The Promotional MixPromotional Mix is a combination is a combination of the different types of promotionof the different types of promotion
Chapter Version 3e 8copy2003 South-Western
Elements of the Promotion MixElements of the Promotion Mix
Advertising
Ingredientsof the
PromotionMix
Ingredientsof the
PromotionMix
Public Relations
Personal Selling
Sales Promotion
Chapter Version 3e 9copy2003 South-Western
What is promotionWhat is promotion
There are two forms of promotionndash Productndash Institutional
It is important to our economyBillions of dollars are spent on
promotion and promotion activities provide millions of people with jobs
Chapter Version 3e 10copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising
Corporate Image
Advocacy Advertising
Typesof
Advertising
Typesof
AdvertisingPioneering
Competitive
Comparative
ProductAdvertising
InstitutionalAdvertising
Chapter Version 3e 11copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising
InstitutionalAdvertisingInstitutionalAdvertising
Designed to enhance a companyrsquos image rather than promote a
particular product
Designed to enhance a companyrsquos image rather than promote a
particular product
ProductAdvertising
ProductAdvertising
Designed to tout the benefits of a specific good or service
Designed to tout the benefits of a specific good or service
22
Chapter Version 3e 12copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising22
Enhance corporationrsquos identify
Enhance corporationrsquos identify
PioneeringPioneering
CompetitiveCompetitive
ComparativeComparative
ProductProductAdvertisingAdvertising
ProductProductAdvertisingAdvertising
InstitutionalInstitutionalAdvertisingAdvertisingInstitutionalInstitutionalAdvertisingAdvertising
Advocacy advertisingAdvocacy advertising
Chapter Version 3e 13copy2003 South-Western
Product AdvertisingProduct Advertising
PioneeringPioneeringPioneeringPioneeringbull Stimulates primary demand for
new product or category
CompetitiveCompetitiveCompetitiveCompetitivebull Influence demand for brand in the
growth phase of the PLC bull Often uses emotional appeal
ComparativeComparativeComparativeComparativebull Compares two or more competing
brandsrsquo product attributes bull Used if growth is sluggish or if
competition is strong
22
Chapter Version 3e 14copy2003 South-Western
The Role of PromotionThe Role of Promotion
Promotion- any form of communication a business or organization uses to inform persuade or remind people about its products and improve its public images
Product promotion - used to convince potential customers to buy products from it instead of from a competitorndash Explains major features and benefits of its productsndash Tells where those products are soldndash Advertises sales on those productsndash Answers customer questionsndash Introduces new products
Chapter Version 3e 15copy2003 South-Western
The Role of PromotionThe Role of Promotion
Institutional Promotion- used to create a favorable image for itself Does not directly sell a certain product However may ultimately result in increased sales of a companyrsquos products
Chapter Version 3e 16copy2003 South-Western
TypesTypes ofof PromotionPromotion
AdvertisingPublicitySales PromotionPersonal Selling
Chapter Version 3e 17copy2003 South-Western
AdvertisingAdvertising
It is paid forOne set format to carry a
message rather than a personal one-on-one message
Identifies the sponsor of the message
Chapter Version 3e 18copy2003 South-Western
AdvertisinghellipAdvertisinghellip
Any paid form of non-personal presentation and promotion of ideas goods or services by an identified sponsor
Advertis
e here
Chapter Version 3e 19copy2003 South-Western
PublicityPublicity
Builds a businessrsquo imagePublicity is freeNot much control over the
message being sent to the public
Chapter Version 3e 20copy2003 South-Western
A specific kind of public relations that involves placing positive and newsworthy information about a business its products or its policies in the media is calledhellip
Publicity
Chapter Version 3e 21copy2003 South-Western
PublicityPublicity
Advantagehellipndash It is free
Disadvantagehellipndash Its contents
cannot be controlled by the business
Chapter Version 3e 22copy2003 South-Western
Principal function of publicityhellipPrincipal function of publicityhellip
Building an image
Chapter Version 3e 23copy2003 South-Western
Public RelationsPublic Relations
Any activity designed to create a favorable image toward a business its products or its policies
Chapter Version 3e 24copy2003 South-Western
Sales PromotionSales Promotion
Usually involves short term activities
Offers some type of incentive to make a purchase
Can be successfully used in all channels of distribution
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 7copy2003 South-Western
The The Promotional MixPromotional Mix is a combination is a combination of the different types of promotionof the different types of promotion
Chapter Version 3e 8copy2003 South-Western
Elements of the Promotion MixElements of the Promotion Mix
Advertising
Ingredientsof the
PromotionMix
Ingredientsof the
PromotionMix
Public Relations
Personal Selling
Sales Promotion
Chapter Version 3e 9copy2003 South-Western
What is promotionWhat is promotion
There are two forms of promotionndash Productndash Institutional
It is important to our economyBillions of dollars are spent on
promotion and promotion activities provide millions of people with jobs
Chapter Version 3e 10copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising
Corporate Image
Advocacy Advertising
Typesof
Advertising
Typesof
AdvertisingPioneering
Competitive
Comparative
ProductAdvertising
InstitutionalAdvertising
Chapter Version 3e 11copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising
InstitutionalAdvertisingInstitutionalAdvertising
Designed to enhance a companyrsquos image rather than promote a
particular product
Designed to enhance a companyrsquos image rather than promote a
particular product
ProductAdvertising
ProductAdvertising
Designed to tout the benefits of a specific good or service
Designed to tout the benefits of a specific good or service
22
Chapter Version 3e 12copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising22
Enhance corporationrsquos identify
Enhance corporationrsquos identify
PioneeringPioneering
CompetitiveCompetitive
ComparativeComparative
ProductProductAdvertisingAdvertising
ProductProductAdvertisingAdvertising
InstitutionalInstitutionalAdvertisingAdvertisingInstitutionalInstitutionalAdvertisingAdvertising
Advocacy advertisingAdvocacy advertising
Chapter Version 3e 13copy2003 South-Western
Product AdvertisingProduct Advertising
PioneeringPioneeringPioneeringPioneeringbull Stimulates primary demand for
new product or category
CompetitiveCompetitiveCompetitiveCompetitivebull Influence demand for brand in the
growth phase of the PLC bull Often uses emotional appeal
ComparativeComparativeComparativeComparativebull Compares two or more competing
brandsrsquo product attributes bull Used if growth is sluggish or if
competition is strong
22
Chapter Version 3e 14copy2003 South-Western
The Role of PromotionThe Role of Promotion
Promotion- any form of communication a business or organization uses to inform persuade or remind people about its products and improve its public images
Product promotion - used to convince potential customers to buy products from it instead of from a competitorndash Explains major features and benefits of its productsndash Tells where those products are soldndash Advertises sales on those productsndash Answers customer questionsndash Introduces new products
Chapter Version 3e 15copy2003 South-Western
The Role of PromotionThe Role of Promotion
Institutional Promotion- used to create a favorable image for itself Does not directly sell a certain product However may ultimately result in increased sales of a companyrsquos products
Chapter Version 3e 16copy2003 South-Western
TypesTypes ofof PromotionPromotion
AdvertisingPublicitySales PromotionPersonal Selling
Chapter Version 3e 17copy2003 South-Western
AdvertisingAdvertising
It is paid forOne set format to carry a
message rather than a personal one-on-one message
Identifies the sponsor of the message
Chapter Version 3e 18copy2003 South-Western
AdvertisinghellipAdvertisinghellip
Any paid form of non-personal presentation and promotion of ideas goods or services by an identified sponsor
Advertis
e here
Chapter Version 3e 19copy2003 South-Western
PublicityPublicity
Builds a businessrsquo imagePublicity is freeNot much control over the
message being sent to the public
Chapter Version 3e 20copy2003 South-Western
A specific kind of public relations that involves placing positive and newsworthy information about a business its products or its policies in the media is calledhellip
Publicity
Chapter Version 3e 21copy2003 South-Western
PublicityPublicity
Advantagehellipndash It is free
Disadvantagehellipndash Its contents
cannot be controlled by the business
Chapter Version 3e 22copy2003 South-Western
Principal function of publicityhellipPrincipal function of publicityhellip
Building an image
Chapter Version 3e 23copy2003 South-Western
Public RelationsPublic Relations
Any activity designed to create a favorable image toward a business its products or its policies
Chapter Version 3e 24copy2003 South-Western
Sales PromotionSales Promotion
Usually involves short term activities
Offers some type of incentive to make a purchase
Can be successfully used in all channels of distribution
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 8copy2003 South-Western
Elements of the Promotion MixElements of the Promotion Mix
Advertising
Ingredientsof the
PromotionMix
Ingredientsof the
PromotionMix
Public Relations
Personal Selling
Sales Promotion
Chapter Version 3e 9copy2003 South-Western
What is promotionWhat is promotion
There are two forms of promotionndash Productndash Institutional
It is important to our economyBillions of dollars are spent on
promotion and promotion activities provide millions of people with jobs
Chapter Version 3e 10copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising
Corporate Image
Advocacy Advertising
Typesof
Advertising
Typesof
AdvertisingPioneering
Competitive
Comparative
ProductAdvertising
InstitutionalAdvertising
Chapter Version 3e 11copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising
InstitutionalAdvertisingInstitutionalAdvertising
Designed to enhance a companyrsquos image rather than promote a
particular product
Designed to enhance a companyrsquos image rather than promote a
particular product
ProductAdvertising
ProductAdvertising
Designed to tout the benefits of a specific good or service
Designed to tout the benefits of a specific good or service
22
Chapter Version 3e 12copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising22
Enhance corporationrsquos identify
Enhance corporationrsquos identify
PioneeringPioneering
CompetitiveCompetitive
ComparativeComparative
ProductProductAdvertisingAdvertising
ProductProductAdvertisingAdvertising
InstitutionalInstitutionalAdvertisingAdvertisingInstitutionalInstitutionalAdvertisingAdvertising
Advocacy advertisingAdvocacy advertising
Chapter Version 3e 13copy2003 South-Western
Product AdvertisingProduct Advertising
PioneeringPioneeringPioneeringPioneeringbull Stimulates primary demand for
new product or category
CompetitiveCompetitiveCompetitiveCompetitivebull Influence demand for brand in the
growth phase of the PLC bull Often uses emotional appeal
ComparativeComparativeComparativeComparativebull Compares two or more competing
brandsrsquo product attributes bull Used if growth is sluggish or if
competition is strong
22
Chapter Version 3e 14copy2003 South-Western
The Role of PromotionThe Role of Promotion
Promotion- any form of communication a business or organization uses to inform persuade or remind people about its products and improve its public images
Product promotion - used to convince potential customers to buy products from it instead of from a competitorndash Explains major features and benefits of its productsndash Tells where those products are soldndash Advertises sales on those productsndash Answers customer questionsndash Introduces new products
Chapter Version 3e 15copy2003 South-Western
The Role of PromotionThe Role of Promotion
Institutional Promotion- used to create a favorable image for itself Does not directly sell a certain product However may ultimately result in increased sales of a companyrsquos products
Chapter Version 3e 16copy2003 South-Western
TypesTypes ofof PromotionPromotion
AdvertisingPublicitySales PromotionPersonal Selling
Chapter Version 3e 17copy2003 South-Western
AdvertisingAdvertising
It is paid forOne set format to carry a
message rather than a personal one-on-one message
Identifies the sponsor of the message
Chapter Version 3e 18copy2003 South-Western
AdvertisinghellipAdvertisinghellip
Any paid form of non-personal presentation and promotion of ideas goods or services by an identified sponsor
Advertis
e here
Chapter Version 3e 19copy2003 South-Western
PublicityPublicity
Builds a businessrsquo imagePublicity is freeNot much control over the
message being sent to the public
Chapter Version 3e 20copy2003 South-Western
A specific kind of public relations that involves placing positive and newsworthy information about a business its products or its policies in the media is calledhellip
Publicity
Chapter Version 3e 21copy2003 South-Western
PublicityPublicity
Advantagehellipndash It is free
Disadvantagehellipndash Its contents
cannot be controlled by the business
Chapter Version 3e 22copy2003 South-Western
Principal function of publicityhellipPrincipal function of publicityhellip
Building an image
Chapter Version 3e 23copy2003 South-Western
Public RelationsPublic Relations
Any activity designed to create a favorable image toward a business its products or its policies
Chapter Version 3e 24copy2003 South-Western
Sales PromotionSales Promotion
Usually involves short term activities
Offers some type of incentive to make a purchase
Can be successfully used in all channels of distribution
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 9copy2003 South-Western
What is promotionWhat is promotion
There are two forms of promotionndash Productndash Institutional
It is important to our economyBillions of dollars are spent on
promotion and promotion activities provide millions of people with jobs
Chapter Version 3e 10copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising
Corporate Image
Advocacy Advertising
Typesof
Advertising
Typesof
AdvertisingPioneering
Competitive
Comparative
ProductAdvertising
InstitutionalAdvertising
Chapter Version 3e 11copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising
InstitutionalAdvertisingInstitutionalAdvertising
Designed to enhance a companyrsquos image rather than promote a
particular product
Designed to enhance a companyrsquos image rather than promote a
particular product
ProductAdvertising
ProductAdvertising
Designed to tout the benefits of a specific good or service
Designed to tout the benefits of a specific good or service
22
Chapter Version 3e 12copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising22
Enhance corporationrsquos identify
Enhance corporationrsquos identify
PioneeringPioneering
CompetitiveCompetitive
ComparativeComparative
ProductProductAdvertisingAdvertising
ProductProductAdvertisingAdvertising
InstitutionalInstitutionalAdvertisingAdvertisingInstitutionalInstitutionalAdvertisingAdvertising
Advocacy advertisingAdvocacy advertising
Chapter Version 3e 13copy2003 South-Western
Product AdvertisingProduct Advertising
PioneeringPioneeringPioneeringPioneeringbull Stimulates primary demand for
new product or category
CompetitiveCompetitiveCompetitiveCompetitivebull Influence demand for brand in the
growth phase of the PLC bull Often uses emotional appeal
ComparativeComparativeComparativeComparativebull Compares two or more competing
brandsrsquo product attributes bull Used if growth is sluggish or if
competition is strong
22
Chapter Version 3e 14copy2003 South-Western
The Role of PromotionThe Role of Promotion
Promotion- any form of communication a business or organization uses to inform persuade or remind people about its products and improve its public images
Product promotion - used to convince potential customers to buy products from it instead of from a competitorndash Explains major features and benefits of its productsndash Tells where those products are soldndash Advertises sales on those productsndash Answers customer questionsndash Introduces new products
Chapter Version 3e 15copy2003 South-Western
The Role of PromotionThe Role of Promotion
Institutional Promotion- used to create a favorable image for itself Does not directly sell a certain product However may ultimately result in increased sales of a companyrsquos products
Chapter Version 3e 16copy2003 South-Western
TypesTypes ofof PromotionPromotion
AdvertisingPublicitySales PromotionPersonal Selling
Chapter Version 3e 17copy2003 South-Western
AdvertisingAdvertising
It is paid forOne set format to carry a
message rather than a personal one-on-one message
Identifies the sponsor of the message
Chapter Version 3e 18copy2003 South-Western
AdvertisinghellipAdvertisinghellip
Any paid form of non-personal presentation and promotion of ideas goods or services by an identified sponsor
Advertis
e here
Chapter Version 3e 19copy2003 South-Western
PublicityPublicity
Builds a businessrsquo imagePublicity is freeNot much control over the
message being sent to the public
Chapter Version 3e 20copy2003 South-Western
A specific kind of public relations that involves placing positive and newsworthy information about a business its products or its policies in the media is calledhellip
Publicity
Chapter Version 3e 21copy2003 South-Western
PublicityPublicity
Advantagehellipndash It is free
Disadvantagehellipndash Its contents
cannot be controlled by the business
Chapter Version 3e 22copy2003 South-Western
Principal function of publicityhellipPrincipal function of publicityhellip
Building an image
Chapter Version 3e 23copy2003 South-Western
Public RelationsPublic Relations
Any activity designed to create a favorable image toward a business its products or its policies
Chapter Version 3e 24copy2003 South-Western
Sales PromotionSales Promotion
Usually involves short term activities
Offers some type of incentive to make a purchase
Can be successfully used in all channels of distribution
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 10copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising
Corporate Image
Advocacy Advertising
Typesof
Advertising
Typesof
AdvertisingPioneering
Competitive
Comparative
ProductAdvertising
InstitutionalAdvertising
Chapter Version 3e 11copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising
InstitutionalAdvertisingInstitutionalAdvertising
Designed to enhance a companyrsquos image rather than promote a
particular product
Designed to enhance a companyrsquos image rather than promote a
particular product
ProductAdvertising
ProductAdvertising
Designed to tout the benefits of a specific good or service
Designed to tout the benefits of a specific good or service
22
Chapter Version 3e 12copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising22
Enhance corporationrsquos identify
Enhance corporationrsquos identify
PioneeringPioneering
CompetitiveCompetitive
ComparativeComparative
ProductProductAdvertisingAdvertising
ProductProductAdvertisingAdvertising
InstitutionalInstitutionalAdvertisingAdvertisingInstitutionalInstitutionalAdvertisingAdvertising
Advocacy advertisingAdvocacy advertising
Chapter Version 3e 13copy2003 South-Western
Product AdvertisingProduct Advertising
PioneeringPioneeringPioneeringPioneeringbull Stimulates primary demand for
new product or category
CompetitiveCompetitiveCompetitiveCompetitivebull Influence demand for brand in the
growth phase of the PLC bull Often uses emotional appeal
ComparativeComparativeComparativeComparativebull Compares two or more competing
brandsrsquo product attributes bull Used if growth is sluggish or if
competition is strong
22
Chapter Version 3e 14copy2003 South-Western
The Role of PromotionThe Role of Promotion
Promotion- any form of communication a business or organization uses to inform persuade or remind people about its products and improve its public images
Product promotion - used to convince potential customers to buy products from it instead of from a competitorndash Explains major features and benefits of its productsndash Tells where those products are soldndash Advertises sales on those productsndash Answers customer questionsndash Introduces new products
Chapter Version 3e 15copy2003 South-Western
The Role of PromotionThe Role of Promotion
Institutional Promotion- used to create a favorable image for itself Does not directly sell a certain product However may ultimately result in increased sales of a companyrsquos products
Chapter Version 3e 16copy2003 South-Western
TypesTypes ofof PromotionPromotion
AdvertisingPublicitySales PromotionPersonal Selling
Chapter Version 3e 17copy2003 South-Western
AdvertisingAdvertising
It is paid forOne set format to carry a
message rather than a personal one-on-one message
Identifies the sponsor of the message
Chapter Version 3e 18copy2003 South-Western
AdvertisinghellipAdvertisinghellip
Any paid form of non-personal presentation and promotion of ideas goods or services by an identified sponsor
Advertis
e here
Chapter Version 3e 19copy2003 South-Western
PublicityPublicity
Builds a businessrsquo imagePublicity is freeNot much control over the
message being sent to the public
Chapter Version 3e 20copy2003 South-Western
A specific kind of public relations that involves placing positive and newsworthy information about a business its products or its policies in the media is calledhellip
Publicity
Chapter Version 3e 21copy2003 South-Western
PublicityPublicity
Advantagehellipndash It is free
Disadvantagehellipndash Its contents
cannot be controlled by the business
Chapter Version 3e 22copy2003 South-Western
Principal function of publicityhellipPrincipal function of publicityhellip
Building an image
Chapter Version 3e 23copy2003 South-Western
Public RelationsPublic Relations
Any activity designed to create a favorable image toward a business its products or its policies
Chapter Version 3e 24copy2003 South-Western
Sales PromotionSales Promotion
Usually involves short term activities
Offers some type of incentive to make a purchase
Can be successfully used in all channels of distribution
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 11copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising
InstitutionalAdvertisingInstitutionalAdvertising
Designed to enhance a companyrsquos image rather than promote a
particular product
Designed to enhance a companyrsquos image rather than promote a
particular product
ProductAdvertising
ProductAdvertising
Designed to tout the benefits of a specific good or service
Designed to tout the benefits of a specific good or service
22
Chapter Version 3e 12copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising22
Enhance corporationrsquos identify
Enhance corporationrsquos identify
PioneeringPioneering
CompetitiveCompetitive
ComparativeComparative
ProductProductAdvertisingAdvertising
ProductProductAdvertisingAdvertising
InstitutionalInstitutionalAdvertisingAdvertisingInstitutionalInstitutionalAdvertisingAdvertising
Advocacy advertisingAdvocacy advertising
Chapter Version 3e 13copy2003 South-Western
Product AdvertisingProduct Advertising
PioneeringPioneeringPioneeringPioneeringbull Stimulates primary demand for
new product or category
CompetitiveCompetitiveCompetitiveCompetitivebull Influence demand for brand in the
growth phase of the PLC bull Often uses emotional appeal
ComparativeComparativeComparativeComparativebull Compares two or more competing
brandsrsquo product attributes bull Used if growth is sluggish or if
competition is strong
22
Chapter Version 3e 14copy2003 South-Western
The Role of PromotionThe Role of Promotion
Promotion- any form of communication a business or organization uses to inform persuade or remind people about its products and improve its public images
Product promotion - used to convince potential customers to buy products from it instead of from a competitorndash Explains major features and benefits of its productsndash Tells where those products are soldndash Advertises sales on those productsndash Answers customer questionsndash Introduces new products
Chapter Version 3e 15copy2003 South-Western
The Role of PromotionThe Role of Promotion
Institutional Promotion- used to create a favorable image for itself Does not directly sell a certain product However may ultimately result in increased sales of a companyrsquos products
Chapter Version 3e 16copy2003 South-Western
TypesTypes ofof PromotionPromotion
AdvertisingPublicitySales PromotionPersonal Selling
Chapter Version 3e 17copy2003 South-Western
AdvertisingAdvertising
It is paid forOne set format to carry a
message rather than a personal one-on-one message
Identifies the sponsor of the message
Chapter Version 3e 18copy2003 South-Western
AdvertisinghellipAdvertisinghellip
Any paid form of non-personal presentation and promotion of ideas goods or services by an identified sponsor
Advertis
e here
Chapter Version 3e 19copy2003 South-Western
PublicityPublicity
Builds a businessrsquo imagePublicity is freeNot much control over the
message being sent to the public
Chapter Version 3e 20copy2003 South-Western
A specific kind of public relations that involves placing positive and newsworthy information about a business its products or its policies in the media is calledhellip
Publicity
Chapter Version 3e 21copy2003 South-Western
PublicityPublicity
Advantagehellipndash It is free
Disadvantagehellipndash Its contents
cannot be controlled by the business
Chapter Version 3e 22copy2003 South-Western
Principal function of publicityhellipPrincipal function of publicityhellip
Building an image
Chapter Version 3e 23copy2003 South-Western
Public RelationsPublic Relations
Any activity designed to create a favorable image toward a business its products or its policies
Chapter Version 3e 24copy2003 South-Western
Sales PromotionSales Promotion
Usually involves short term activities
Offers some type of incentive to make a purchase
Can be successfully used in all channels of distribution
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 12copy2003 South-Western
Major Types of AdvertisingMajor Types of Advertising22
Enhance corporationrsquos identify
Enhance corporationrsquos identify
PioneeringPioneering
CompetitiveCompetitive
ComparativeComparative
ProductProductAdvertisingAdvertising
ProductProductAdvertisingAdvertising
InstitutionalInstitutionalAdvertisingAdvertisingInstitutionalInstitutionalAdvertisingAdvertising
Advocacy advertisingAdvocacy advertising
Chapter Version 3e 13copy2003 South-Western
Product AdvertisingProduct Advertising
PioneeringPioneeringPioneeringPioneeringbull Stimulates primary demand for
new product or category
CompetitiveCompetitiveCompetitiveCompetitivebull Influence demand for brand in the
growth phase of the PLC bull Often uses emotional appeal
ComparativeComparativeComparativeComparativebull Compares two or more competing
brandsrsquo product attributes bull Used if growth is sluggish or if
competition is strong
22
Chapter Version 3e 14copy2003 South-Western
The Role of PromotionThe Role of Promotion
Promotion- any form of communication a business or organization uses to inform persuade or remind people about its products and improve its public images
Product promotion - used to convince potential customers to buy products from it instead of from a competitorndash Explains major features and benefits of its productsndash Tells where those products are soldndash Advertises sales on those productsndash Answers customer questionsndash Introduces new products
Chapter Version 3e 15copy2003 South-Western
The Role of PromotionThe Role of Promotion
Institutional Promotion- used to create a favorable image for itself Does not directly sell a certain product However may ultimately result in increased sales of a companyrsquos products
Chapter Version 3e 16copy2003 South-Western
TypesTypes ofof PromotionPromotion
AdvertisingPublicitySales PromotionPersonal Selling
Chapter Version 3e 17copy2003 South-Western
AdvertisingAdvertising
It is paid forOne set format to carry a
message rather than a personal one-on-one message
Identifies the sponsor of the message
Chapter Version 3e 18copy2003 South-Western
AdvertisinghellipAdvertisinghellip
Any paid form of non-personal presentation and promotion of ideas goods or services by an identified sponsor
Advertis
e here
Chapter Version 3e 19copy2003 South-Western
PublicityPublicity
Builds a businessrsquo imagePublicity is freeNot much control over the
message being sent to the public
Chapter Version 3e 20copy2003 South-Western
A specific kind of public relations that involves placing positive and newsworthy information about a business its products or its policies in the media is calledhellip
Publicity
Chapter Version 3e 21copy2003 South-Western
PublicityPublicity
Advantagehellipndash It is free
Disadvantagehellipndash Its contents
cannot be controlled by the business
Chapter Version 3e 22copy2003 South-Western
Principal function of publicityhellipPrincipal function of publicityhellip
Building an image
Chapter Version 3e 23copy2003 South-Western
Public RelationsPublic Relations
Any activity designed to create a favorable image toward a business its products or its policies
Chapter Version 3e 24copy2003 South-Western
Sales PromotionSales Promotion
Usually involves short term activities
Offers some type of incentive to make a purchase
Can be successfully used in all channels of distribution
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 13copy2003 South-Western
Product AdvertisingProduct Advertising
PioneeringPioneeringPioneeringPioneeringbull Stimulates primary demand for
new product or category
CompetitiveCompetitiveCompetitiveCompetitivebull Influence demand for brand in the
growth phase of the PLC bull Often uses emotional appeal
ComparativeComparativeComparativeComparativebull Compares two or more competing
brandsrsquo product attributes bull Used if growth is sluggish or if
competition is strong
22
Chapter Version 3e 14copy2003 South-Western
The Role of PromotionThe Role of Promotion
Promotion- any form of communication a business or organization uses to inform persuade or remind people about its products and improve its public images
Product promotion - used to convince potential customers to buy products from it instead of from a competitorndash Explains major features and benefits of its productsndash Tells where those products are soldndash Advertises sales on those productsndash Answers customer questionsndash Introduces new products
Chapter Version 3e 15copy2003 South-Western
The Role of PromotionThe Role of Promotion
Institutional Promotion- used to create a favorable image for itself Does not directly sell a certain product However may ultimately result in increased sales of a companyrsquos products
Chapter Version 3e 16copy2003 South-Western
TypesTypes ofof PromotionPromotion
AdvertisingPublicitySales PromotionPersonal Selling
Chapter Version 3e 17copy2003 South-Western
AdvertisingAdvertising
It is paid forOne set format to carry a
message rather than a personal one-on-one message
Identifies the sponsor of the message
Chapter Version 3e 18copy2003 South-Western
AdvertisinghellipAdvertisinghellip
Any paid form of non-personal presentation and promotion of ideas goods or services by an identified sponsor
Advertis
e here
Chapter Version 3e 19copy2003 South-Western
PublicityPublicity
Builds a businessrsquo imagePublicity is freeNot much control over the
message being sent to the public
Chapter Version 3e 20copy2003 South-Western
A specific kind of public relations that involves placing positive and newsworthy information about a business its products or its policies in the media is calledhellip
Publicity
Chapter Version 3e 21copy2003 South-Western
PublicityPublicity
Advantagehellipndash It is free
Disadvantagehellipndash Its contents
cannot be controlled by the business
Chapter Version 3e 22copy2003 South-Western
Principal function of publicityhellipPrincipal function of publicityhellip
Building an image
Chapter Version 3e 23copy2003 South-Western
Public RelationsPublic Relations
Any activity designed to create a favorable image toward a business its products or its policies
Chapter Version 3e 24copy2003 South-Western
Sales PromotionSales Promotion
Usually involves short term activities
Offers some type of incentive to make a purchase
Can be successfully used in all channels of distribution
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 14copy2003 South-Western
The Role of PromotionThe Role of Promotion
Promotion- any form of communication a business or organization uses to inform persuade or remind people about its products and improve its public images
Product promotion - used to convince potential customers to buy products from it instead of from a competitorndash Explains major features and benefits of its productsndash Tells where those products are soldndash Advertises sales on those productsndash Answers customer questionsndash Introduces new products
Chapter Version 3e 15copy2003 South-Western
The Role of PromotionThe Role of Promotion
Institutional Promotion- used to create a favorable image for itself Does not directly sell a certain product However may ultimately result in increased sales of a companyrsquos products
Chapter Version 3e 16copy2003 South-Western
TypesTypes ofof PromotionPromotion
AdvertisingPublicitySales PromotionPersonal Selling
Chapter Version 3e 17copy2003 South-Western
AdvertisingAdvertising
It is paid forOne set format to carry a
message rather than a personal one-on-one message
Identifies the sponsor of the message
Chapter Version 3e 18copy2003 South-Western
AdvertisinghellipAdvertisinghellip
Any paid form of non-personal presentation and promotion of ideas goods or services by an identified sponsor
Advertis
e here
Chapter Version 3e 19copy2003 South-Western
PublicityPublicity
Builds a businessrsquo imagePublicity is freeNot much control over the
message being sent to the public
Chapter Version 3e 20copy2003 South-Western
A specific kind of public relations that involves placing positive and newsworthy information about a business its products or its policies in the media is calledhellip
Publicity
Chapter Version 3e 21copy2003 South-Western
PublicityPublicity
Advantagehellipndash It is free
Disadvantagehellipndash Its contents
cannot be controlled by the business
Chapter Version 3e 22copy2003 South-Western
Principal function of publicityhellipPrincipal function of publicityhellip
Building an image
Chapter Version 3e 23copy2003 South-Western
Public RelationsPublic Relations
Any activity designed to create a favorable image toward a business its products or its policies
Chapter Version 3e 24copy2003 South-Western
Sales PromotionSales Promotion
Usually involves short term activities
Offers some type of incentive to make a purchase
Can be successfully used in all channels of distribution
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 15copy2003 South-Western
The Role of PromotionThe Role of Promotion
Institutional Promotion- used to create a favorable image for itself Does not directly sell a certain product However may ultimately result in increased sales of a companyrsquos products
Chapter Version 3e 16copy2003 South-Western
TypesTypes ofof PromotionPromotion
AdvertisingPublicitySales PromotionPersonal Selling
Chapter Version 3e 17copy2003 South-Western
AdvertisingAdvertising
It is paid forOne set format to carry a
message rather than a personal one-on-one message
Identifies the sponsor of the message
Chapter Version 3e 18copy2003 South-Western
AdvertisinghellipAdvertisinghellip
Any paid form of non-personal presentation and promotion of ideas goods or services by an identified sponsor
Advertis
e here
Chapter Version 3e 19copy2003 South-Western
PublicityPublicity
Builds a businessrsquo imagePublicity is freeNot much control over the
message being sent to the public
Chapter Version 3e 20copy2003 South-Western
A specific kind of public relations that involves placing positive and newsworthy information about a business its products or its policies in the media is calledhellip
Publicity
Chapter Version 3e 21copy2003 South-Western
PublicityPublicity
Advantagehellipndash It is free
Disadvantagehellipndash Its contents
cannot be controlled by the business
Chapter Version 3e 22copy2003 South-Western
Principal function of publicityhellipPrincipal function of publicityhellip
Building an image
Chapter Version 3e 23copy2003 South-Western
Public RelationsPublic Relations
Any activity designed to create a favorable image toward a business its products or its policies
Chapter Version 3e 24copy2003 South-Western
Sales PromotionSales Promotion
Usually involves short term activities
Offers some type of incentive to make a purchase
Can be successfully used in all channels of distribution
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 16copy2003 South-Western
TypesTypes ofof PromotionPromotion
AdvertisingPublicitySales PromotionPersonal Selling
Chapter Version 3e 17copy2003 South-Western
AdvertisingAdvertising
It is paid forOne set format to carry a
message rather than a personal one-on-one message
Identifies the sponsor of the message
Chapter Version 3e 18copy2003 South-Western
AdvertisinghellipAdvertisinghellip
Any paid form of non-personal presentation and promotion of ideas goods or services by an identified sponsor
Advertis
e here
Chapter Version 3e 19copy2003 South-Western
PublicityPublicity
Builds a businessrsquo imagePublicity is freeNot much control over the
message being sent to the public
Chapter Version 3e 20copy2003 South-Western
A specific kind of public relations that involves placing positive and newsworthy information about a business its products or its policies in the media is calledhellip
Publicity
Chapter Version 3e 21copy2003 South-Western
PublicityPublicity
Advantagehellipndash It is free
Disadvantagehellipndash Its contents
cannot be controlled by the business
Chapter Version 3e 22copy2003 South-Western
Principal function of publicityhellipPrincipal function of publicityhellip
Building an image
Chapter Version 3e 23copy2003 South-Western
Public RelationsPublic Relations
Any activity designed to create a favorable image toward a business its products or its policies
Chapter Version 3e 24copy2003 South-Western
Sales PromotionSales Promotion
Usually involves short term activities
Offers some type of incentive to make a purchase
Can be successfully used in all channels of distribution
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 17copy2003 South-Western
AdvertisingAdvertising
It is paid forOne set format to carry a
message rather than a personal one-on-one message
Identifies the sponsor of the message
Chapter Version 3e 18copy2003 South-Western
AdvertisinghellipAdvertisinghellip
Any paid form of non-personal presentation and promotion of ideas goods or services by an identified sponsor
Advertis
e here
Chapter Version 3e 19copy2003 South-Western
PublicityPublicity
Builds a businessrsquo imagePublicity is freeNot much control over the
message being sent to the public
Chapter Version 3e 20copy2003 South-Western
A specific kind of public relations that involves placing positive and newsworthy information about a business its products or its policies in the media is calledhellip
Publicity
Chapter Version 3e 21copy2003 South-Western
PublicityPublicity
Advantagehellipndash It is free
Disadvantagehellipndash Its contents
cannot be controlled by the business
Chapter Version 3e 22copy2003 South-Western
Principal function of publicityhellipPrincipal function of publicityhellip
Building an image
Chapter Version 3e 23copy2003 South-Western
Public RelationsPublic Relations
Any activity designed to create a favorable image toward a business its products or its policies
Chapter Version 3e 24copy2003 South-Western
Sales PromotionSales Promotion
Usually involves short term activities
Offers some type of incentive to make a purchase
Can be successfully used in all channels of distribution
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 18copy2003 South-Western
AdvertisinghellipAdvertisinghellip
Any paid form of non-personal presentation and promotion of ideas goods or services by an identified sponsor
Advertis
e here
Chapter Version 3e 19copy2003 South-Western
PublicityPublicity
Builds a businessrsquo imagePublicity is freeNot much control over the
message being sent to the public
Chapter Version 3e 20copy2003 South-Western
A specific kind of public relations that involves placing positive and newsworthy information about a business its products or its policies in the media is calledhellip
Publicity
Chapter Version 3e 21copy2003 South-Western
PublicityPublicity
Advantagehellipndash It is free
Disadvantagehellipndash Its contents
cannot be controlled by the business
Chapter Version 3e 22copy2003 South-Western
Principal function of publicityhellipPrincipal function of publicityhellip
Building an image
Chapter Version 3e 23copy2003 South-Western
Public RelationsPublic Relations
Any activity designed to create a favorable image toward a business its products or its policies
Chapter Version 3e 24copy2003 South-Western
Sales PromotionSales Promotion
Usually involves short term activities
Offers some type of incentive to make a purchase
Can be successfully used in all channels of distribution
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 19copy2003 South-Western
PublicityPublicity
Builds a businessrsquo imagePublicity is freeNot much control over the
message being sent to the public
Chapter Version 3e 20copy2003 South-Western
A specific kind of public relations that involves placing positive and newsworthy information about a business its products or its policies in the media is calledhellip
Publicity
Chapter Version 3e 21copy2003 South-Western
PublicityPublicity
Advantagehellipndash It is free
Disadvantagehellipndash Its contents
cannot be controlled by the business
Chapter Version 3e 22copy2003 South-Western
Principal function of publicityhellipPrincipal function of publicityhellip
Building an image
Chapter Version 3e 23copy2003 South-Western
Public RelationsPublic Relations
Any activity designed to create a favorable image toward a business its products or its policies
Chapter Version 3e 24copy2003 South-Western
Sales PromotionSales Promotion
Usually involves short term activities
Offers some type of incentive to make a purchase
Can be successfully used in all channels of distribution
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 20copy2003 South-Western
A specific kind of public relations that involves placing positive and newsworthy information about a business its products or its policies in the media is calledhellip
Publicity
Chapter Version 3e 21copy2003 South-Western
PublicityPublicity
Advantagehellipndash It is free
Disadvantagehellipndash Its contents
cannot be controlled by the business
Chapter Version 3e 22copy2003 South-Western
Principal function of publicityhellipPrincipal function of publicityhellip
Building an image
Chapter Version 3e 23copy2003 South-Western
Public RelationsPublic Relations
Any activity designed to create a favorable image toward a business its products or its policies
Chapter Version 3e 24copy2003 South-Western
Sales PromotionSales Promotion
Usually involves short term activities
Offers some type of incentive to make a purchase
Can be successfully used in all channels of distribution
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 21copy2003 South-Western
PublicityPublicity
Advantagehellipndash It is free
Disadvantagehellipndash Its contents
cannot be controlled by the business
Chapter Version 3e 22copy2003 South-Western
Principal function of publicityhellipPrincipal function of publicityhellip
Building an image
Chapter Version 3e 23copy2003 South-Western
Public RelationsPublic Relations
Any activity designed to create a favorable image toward a business its products or its policies
Chapter Version 3e 24copy2003 South-Western
Sales PromotionSales Promotion
Usually involves short term activities
Offers some type of incentive to make a purchase
Can be successfully used in all channels of distribution
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 22copy2003 South-Western
Principal function of publicityhellipPrincipal function of publicityhellip
Building an image
Chapter Version 3e 23copy2003 South-Western
Public RelationsPublic Relations
Any activity designed to create a favorable image toward a business its products or its policies
Chapter Version 3e 24copy2003 South-Western
Sales PromotionSales Promotion
Usually involves short term activities
Offers some type of incentive to make a purchase
Can be successfully used in all channels of distribution
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 23copy2003 South-Western
Public RelationsPublic Relations
Any activity designed to create a favorable image toward a business its products or its policies
Chapter Version 3e 24copy2003 South-Western
Sales PromotionSales Promotion
Usually involves short term activities
Offers some type of incentive to make a purchase
Can be successfully used in all channels of distribution
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 24copy2003 South-Western
Sales PromotionSales Promotion
Usually involves short term activities
Offers some type of incentive to make a purchase
Can be successfully used in all channels of distribution
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 25copy2003 South-Western
All marketing activities other than personal selling advertising and public relations is calledhellip
Sales Promotion
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 26copy2003 South-Western
Sales Promotion (conrsquot)Sales Promotion (conrsquot)
Trade Promotionsndash Slotting
Allowancesndash Buying Allowancesndash Trade Shows and
Conventionsndash Sales Incentives
Consumer Sales Promotionsndash Licensingndash Promotional Tie-Insndash Visual Merchandising
and Displaysndash Premiums amp
Incentivesndash Product Samples
Types of PromotionsTypes of Promotions
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 27copy2003 South-Western
Personal SellingPersonal Selling
The responsibility of sales personnelndash Order - taking personnel
ndash Order - getting personnel
The most flexible and individualized type of promotion available
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 28copy2003 South-Western
What is the largest form of promotionWhat is the largest form of promotion
Personal Sellingndash This type of
promotion requires contact with potential buyers
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 29copy2003 South-Western
What do they doWhat do they do
Advertisingndash Creates awareness of a businessrsquos product
Public Relationsndash Creates a favorable image for the business itself
Sales Promotionndash Efforts stimulate sales
Personal Sellingndash Builds on all of the other efforts by helping
customers complete the sale
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Promotion
11
Communication by
marketers that informs
persuades and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response and then
reassures
Learning Objective
Discuss the role of promotionin the marketing mix
404
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Promotional Promotional StrategyStrategy
4 Sales Promotion
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
A plan for the optimal use of the elements of
promotion
1 Advertising
3 Personal Selling
2 Public Relations
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Th
e R
ole
of
Pro
mo
tio
nT
he
Ro
le o
f P
rom
oti
on Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Promotional Mix
bullAdvertisingbullPublic RelationsbullPersonal SellingbullSales Promotion
To convince target customers that the goodsservices offer a DIFFERENTIAL ADVANTAGE over competitors
Overall Marketing Objectives
Overall Marketing Objectives
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Marketing Mixbull Productbull Placebull Promotion Planbull Price
Target MarketTarget Market
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Retain CustomersRetain Customers
Build Channel RelationshipsBuild Channel Relationships
Identify ProspectsIdentify Prospects
Build Positive ImagesBuild Positive Images
Create AwarenessCreate Awareness
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
Making People Aware IPODMaking People Aware IPOD
Mercedes BenzMercedes Benz
Fair GiveawaysFair Giveaways
Cooperative AdvertisingCooperative Advertising
Frequent Flyer ProgramsFrequent Flyer Programs
Goals of Market Communications
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
FeaturesThat ProvideDifferentialAdvantage
FeaturesThat ProvideDifferentialAdvantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
404Learning Objective 11 Discuss the role of promotion
in the marketing mix
CadillacCadillac
John Deere Overnight PartsJohn Deere Overnight Parts
Walmart Everyday Low PricesWalmart Everyday Low Prices
Hybrid CarsHybrid Cars
ldquoWe will pick you uprdquoldquoWe will pick you uprdquo
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Promotional MixPromotional Mix
Combination of promotion
tools used to reach the
target market and fulfill
the organizationrsquos
overall goals
Personal Selling
Advertising
Public Relations
Sales Promotion
22Learning Objective
Discuss the elements of the promotional mix
405
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
1 Personal 1 Personal SellingSelling
Traditional Selling
Traditional Selling
Relationship Selling
Relationship Selling
Planned presentation to one or more prospective buyers to make a sale
405Learning Objective 22
Discuss the elements of the promotional mix
CONSUMER PRD BUSINESS PRD
CARS QUICK SALE
WIN - LOSE
COMPUTERS LONG REL
WIN - WIN
Two people communicate in order to influence each other
Accomplishment of mutual
objectives
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 37copy2003 South-Western
Describe Advantages of Describe Advantages of Personal SellingPersonal Selling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective in obtaining sales and gaining satisfied customers
88Learning Learning Objective Objective
PART 2479
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 38copy2003 South-Western
Advertising Versus Personal SellingAdvertising Versus Personal Selling
Personal Selling is more important if
The product has a high valueIt is a custom-made productThere are few customersThe product is technically complexCustomers are geographically concentrated
AdvertisingSales Promotion is more important if
The product has a low valueIt is a standardized productThere are many customersThe product is simple to understandCustomers are geographically dispersed
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 39copy2003 South-Western
Advantages of Personal SellingAdvantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
2 Advertising2 Advertising
Impersonal one-way mass communication
405Learning Objective 22
Discuss the elements of the promotional mix
about a product service or
organization that is paid for by a marketer
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Advertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Computer modems Fax machines
406Learning Objective 22
Discuss the elements of the promotional mix
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
AdvertisingAdvertising
Cost per contact is low
Total cost is high
406Learning Objective 22
Discuss the elements of the promotional mix
Advantages DisadvantagesAbility to reach large
number of people
Can be micro-targeted
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 43copy2003 South-Western
Four Types of PromotionFour Types of Promotion
1 Advertising - any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor
Six Advantages of Advertisingndash 1 A large number of people usually see the advertiserrsquos
messagendash 2 Costs per potential customer are usually lower than other
forms of promotionndash 3 Can choose the most appropriate media to reach target mktndash 4 Can control the content of an advertisementndash 5 Ads are subject to repeat viewingndash Ads can ldquopresalerdquo products
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 44copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Four Disadvantages of Advertisingndash 1 Cannot focus well on individual needsndash 2 Some forms of advertising can be too expensive for
many businessesndash 3 Sometimes advertising is wasteful and inefficient -
message may be spent on non-potential customersndash 4 Advertising must be brief
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
3 Public 3 Public RelationsRelations
The marketing function that
evaluates public attitudes
identifies areas within the
organization that the public
may be interested in and
executes a program of
action to earn public
understanding and
acceptance
406Learning Objective 22
Discuss the elements of the promotional mix
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 46copy2003 South-Western
Four Types of PromotionFour Types of Promotion
2 Publicity - placing newsworthy information about a company product or person in the media Can be used to promote particular events and promote particular products The main purpose of publicity is to build an image Image - the way a business or organization is defined in peoplersquos minds
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 47copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Publicityndash Publicity is free advertising is notndash Can be used to create a positive image within the
communityndash Viewed as being more credible or believable than
advertisingndash Viewed as news people more attention to publicity
Disadvantages of Publicityndash Give up much of your control of your messagendash Not all publicity is positivendash Lack of control by the business - bad stories can get
printed
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Evaluates public attitudes
Evaluates public attitudes
Executes programs to ldquowinrdquo public
Executes programs to ldquowinrdquo public
Functions ofPublic Relations
Functions ofPublic Relations
Publicity Public information (good or bad ) about a company good or service appearing
in the mass media as a unpaid news item
407Learning Objective 22
Discuss the elements of the promotional mix
Ecology
Recycling
Curbside Programs
Identifies areas of public interestIdentifies areas of public interest
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 49copy2003 South-Western
Publicity and Public RelationsPublicity and Public Relations
Public Relations - any activity designed to create goodwill toward a business
Benefits of PRndash Increasing salesndash Increasing firmrsquos good reputationndash Increasing customers reception of advertising messagesndash Spreading accurate information to the publicndash Conditioning customers to expect quality products from
the companyndash Reducing the impact of problemsndash Helping to obtain better treatment from government
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 50copy2003 South-Western
Audiences for PRAudiences for PR
Internal Audiences - groups within the organization
Employee Relations - goal is to keep your employees happy by usingndash Tuition reimbursementndash Newslettersndash Health and wellness programsndash Opportunities for communications
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 51copy2003 South-Western
Audiences for PRAudiences for PR
External Audiences - groups outside the organizationCustomers - Satisfied customers = repeat
business Ways to keep customers happy includendash Provide special services and amenities such as gift-
wrapping check cashing free delivery free parking etcndash Advisory boards - panels of consumers that make
suggestions about products and businessesndash Customer newsletters annual reportsndash Customer events - seminars lunches entertainment
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 52copy2003 South-Western
Audiences for PRAudiences for PR
Community - company sponsors activities that benefit the civic social and cultural life of the community Activities can includendash School partnerships - HP donating computers to the
high schoolndash Sponsorship of community eventsndash Scholarships
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 53copy2003 South-Western
Public Relations Public Relations News Release - a pre-written story about the
company that is sent to various media for publication It usually contains information about the companyrsquos employees stores operations products corporate philosophy or participation in an event or program Can contain hard or soft newsndash Hard News - information that should be announced right
away because the public will want to know about it immediately
ndash Soft News - information that does not need to be announced immediately because it will be of as much interest to the public later as it is now
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 54copy2003 South-Western
Purposes of News ReleasesPurposes of News Releases
To introduce new productsTo keep the business in the public eyeTo position the businessrsquos imageTo support good employee relationsTo create good community relations
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 55copy2003 South-Western
Getting Your News Release in the Getting Your News Release in the MediaMedia Include a captioned photograph with the release Meet media deadlines Write an appropriate number of releases Direct the release to a specific person Advise the staff that you have sent out a release Reread the release after setting it aside Keep a copy of every release Send a cover letter with the release Send a thank-you note after the release is used Avoid pressuring the editor Avoid mentioning publicity or advertising Avoid playing favorites
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 56copy2003 South-Western
Public Relations Public Relations
Press Kit - a folder containing articles news releases feature stories and photographs about a company product or person Press kits are given to the media to assist them in reporting on the intended news item
Press Conference - a meeting in which media members are invited by the business or organization to hear an announcement about a newsworthy event
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 57copy2003 South-Western
The Tools of Public RelationsThe Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
4 Sales Promotion4 Sales Promotion
EndConsumers
EndConsumers
CompanyEmployees Company
Employees
Sales PromotionTargets
Sales PromotionTargets
Marketing activities--other than personal selling
advertising and public relations--that stimulate
consumer buying and dealer effectiveness
407Learning Objective 22
Discuss the elements of the promotional mix
Trade CustomersTrade Customers
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 59copy2003 South-Western
A Free samplesA Free samples
B ContestsB Contests
C PremiumsC Premiums
D Trade ShowsD Trade Shows
E Vacation GiveawaysE Vacation Giveaways
F CouponsF Coupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
407Learning Objective 22
Discuss the elements of the promotional mix
SOAP IN MAIL CHIPS IN STORE
BEANIE BABIES
OUT OF STORE IN STORE
ldquoWHY YOU LIKErdquo
HORT CENT
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 60copy2003 South-Western
Four Types of PromotionFour Types of Promotion3 Sales Promotion - All marketing activities other than
personal selling advertising and publicity that are used to stimulate consumer purchasing and sales effectiveness
Objectives of Sales Promotionndash Increase salesndash Inform customers about new productsndash Create a positive store or corporate image
3 Characteristicsndash Short term activitiesndash Offers some type of incentivendash Can be successfully used in all channels of distribution
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 61copy2003 South-Western
Four Types of PromotionFour Types of Promotion Sales promotion can be either consumer or trade oriented Trade Promotions - sales promotion activities designed to gain
manufacturersrsquo wholesalersrsquo and retailersrsquo support for a product More money is spent on promoting to businesses than to consumersndash 1 Slotting allowances - a cash premium paid by the manufacture to
a retail chain for the costs involved in placing a new product on its shelves
ndash 2 Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage them to either buy a product or buy a larger quantity
ndash 3 Trade Shows and Conventions - designed to reach wholesalersndash 4 Sales incentives - awards given managers and employees who
successfully meet or exceed their companyrsquos set sales quota
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 62copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Consumer Sales Promotions - designed to encourage customers to buy a productndash 1 Licensing - Organizations such as manufactures movie
makers sports teams and celebrities may license for a fee their logo trademark trade characters names and likenesses or personal endorsements to a business to be used in promoting the businessrsquos products
ndash 2 Promotional tie-ins - involve sales promotional arrangements between one or more retailers or manufacturers They combine their resources (advertising and sales promotional activities) to do a promotion that creates additional sales for each partner
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 63copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 3 Visual Merchandising and Displays -
ndash Visual Merchandising - the coordination of all physical elements in a place of business so that it projects the right image to its customers
ndash Displays - visual and artistic aspects of presenting a product to a target group of customers
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 64copy2003 South-Western
Four Types of PromotionFour Types of Promotion
ndash 4 Premium and Incentives - most popular and frequently used sales promotion type
ndash Premiums - low cost items given away free to consumers as a condition of purchase
bull Coupons - certificates given to customers entitling cash discountsbull Factory Packs (in-packs)- free gifts placed in product packagesbull Traffic Builders - low cost premiums like key chains pensbull Coupon Plans - ongoing programs in exchange for labels coupons or
other tokens from one or more purchases
ndash Incentives - higher-priced products given in contests or sweepstakes
ndash 5 Product Samples - free trial size of a product that is sent through the mail distributed door-to-door or through retail stores and trade shows
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 65copy2003 South-Western
Four Types of PromotionFour Types of Promotion
Advantages of Sales Promotionsndash Unique and has special appeal to a potential customerndash Helps build customer loyalty
Disadvantages of Sales Promotionsndash Difficult to end without the customers becoming
dissatisfied ndash Store image and sales can suffer if the promotion is not
properly planned and managedndash Only designed to supplement other promotional efforts
and cannot make up for poor products
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 66copy2003 South-Western
The Concept of the Promotional MixThe Concept of the Promotional Mix
Important to achieve promotional goals
Decide on the promotional mix that will be most effective in persuading customer or other businesses to purchase and support the businesses products
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 67copy2003 South-Western
PROMOTIONAL MIXPROMOTIONAL MIX
Promotional Mix - a combination of different types of promotion A business decides on a promotional mix that will be most effective in persuading customers or other businesses to purchase and support the businessrsquos products
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 68copy2003 South-Western
Tools for Consumer Sales PromotionTools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 69copy2003 South-Western
Promotional MixPromotional Mix
Factors affecting the selection of a promotional mixndash Good Service or Idea
bull Type of productbull Product naturebull Stage of life cycle
ndash Productrsquos marketbull Type of consumerbull Number of Consumersbull Geographical location
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 70copy2003 South-Western
Promotional MixPromotional Mix
ndash Distribution Systemndash Productrsquos Company
bull Historical perspective
bull Available funds
bull Size of sales force
ndash Competition
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Integrated Marketing Communications
A method of carefully
coordinating all
promotional activities to
produce a consistent
unified message that is
customer focused
33Learning Objective
Discuss concept of integrated marketing communications
408
NEW MOVIE ndash NEW TOY AT McDonalds
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
428Learning Objective 33
Discuss concept of integrated marketing communications
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
CommunicationCommunication
44
The process by which we
exchange or share
meanings through a common
set of symbols
Learning Objective
Describe the communication process
InterpersonalCommunicationInterpersonal
Communication MassCommunication
MassCommunication
Categories of CommunicationCategories of
Communication
409
ONE TO FEW ONE TO MANY
PERSON TO PERSON IMPERSONAL
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 74copy2003 South-Western
Originator of the message in the communication process
Originator of the message in the communication process
EncodingEncoding Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
Conversion of a senderrsquos ideas amp thoughts into a message usually words or signs
SenderSender
The Communication ProcessThe Communication Process
Message Transmission
Message Transmission
ReceiverDecodingReceiverDecoding
Passage of the message through a communication media
Passage of the message through a communication media
Interpretation of language and symbols sent through the communication media
Interpretation of language and symbols sent through the communication media
FeedbackFeedback Receiver response to the senderReceiver response to the sender
410Learning Objective 44
Describe the communication process
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
The Communication
Process
NoiseNoise
SenderIdea
SenderIdea
EncodingMessage
EncodingMessage
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
411Learning Objective 44
Describe The Communication Process
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 76copy2003 South-Western
The Communication ProcessThe Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 77copy2003 South-Western
Characteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
A AdvertisingA Advertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
414Learning Objective 44
Describe the communication process
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 78copy2003 South-Western
Characteristics of Public Relations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
B Public RelationsB Public Relations
Usually indirect non-personal Usually indirect non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
414Learning Objective 44
Describe the communication process
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 79copy2003 South-Western
Characteristics of Sales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
C Sales PromotionC Sales PromotionC Sales PromotionC Sales Promotion
Usually Indirect and non-personal Usually Indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
None Same messageNone Same message
414Learning Objective 44
Describe the communication process
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 80copy2003 South-Western
Characteristics of Personal SellingCharacteristics of Personal Selling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
D Personal SellingD Personal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
414Learning Objective 44
Describe the communication process
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Goals and Tasks of PromotionGoals and Tasks of PromotionINFORMATIVE OBJECTIVE
bull Increase awareness
bull Explain how product works
bull Suggest new uses
bull Build company image
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
BACK OF PACKAGE
RICE KRISPIE BARS
CELL PHONES
WORLDrsquoS LEADER IN
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Goals and Tasks of PromotionGoals and Tasks of Promotion
PERSUASION OBJECTIVE
bull Encourage brand switching
bull Change customersrsquo perception of product attributes
bull Influence buying decision
bull Persuade customers to call
415Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
SWITCH PHONE CO
HUYNDI CARS
ldquoON SALE UNTILrdquo
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Goals and Tasks of Promotion
REMINDER OBJECTIVE
bull Remind customers that productservice may be needed
bull Remind customers where to buy product
bull Maintain customer awareness
416 Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
ldquoNORTHERN OHIO BUICK DEALERS
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Goals and Tasks of Promotion
REASSURE OBJECTIVE
bull Reduce Cognitive Dissonance
Learning Objective 55 Explain the goal amp tasks Explain the goal amp tasks
of promotionof promotion
CARS
HOUSES
BIG BOATS
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message
66Learning Learning Objective Objective
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
AAttentionttention
IInterestnterest
DDesireesire
AActionction
416
TH
E A
IDA
CO
NC
EP
TT
HE
AID
A C
ON
CE
PT
Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 87copy2003 South-Western
AIDA and the Hierarchy of AIDA and the Hierarchy of EffectsEffects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 88copy2003 South-Western
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Noteffective
PublicRelations
PublicRelations
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Veryeffective
Noteffective
Noteffective
SalesPromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
PersonalSelling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
Somewhateffective
417Learning Learning Objective Objective 66
Discuss the AIDA concept Discuss the AIDA concept and its relationship to and its relationship to the promotional mixthe promotional mix
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 89copy2003 South-Western
Factors that Affect the Promotion MixFactors that Affect the Promotion Mix
PushndashandndashPull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
A Nature of the ProductA Nature of the Product
Product characteristics ndash Business product vs consumer product
Costs and risks
Social risk
Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
418
CLOTHING JEWELRY
HIGH COST OF PERSONAL SELLING
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 91copy2003 South-Western
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
4 Reassuring4 Reassuring
1 Informing1 Informing 3 Reminding3 Reminding
2 Persuading2 Persuading
55
TargetAudienceTarget
Audience
Learning Objective
Explain the goal amp tasks Explain the goal amp tasks of promotionof promotion
PLC StagesIntroduction Early Growth
PLC StagesGrowth Maturity
PLC Stages
Maturity
PLC StagesALL
414
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 93copy2003 South-Western
B Product Life Cycle amp Promotional Mix B Product Life Cycle amp Promotional Mix
Light Advertising
pre-introduction
Publicity
Heavy use of advertising
PR forawareness
sales promotion
for trial
ADPRdecreaseLimited Sales
Promotion Personal Selling for
distribution
Ads decrease
Sales PromotionPersonal Selling
Reminder amp Persuasive
Advertising PR Brand
loyaltyPersonal Selling for
distribution
Introduction Growth
MaturityDecline
Sal
es (
$)S
ales
($)
TimeTime
419Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
C Target Market CharacteristicsC Target Market Characteristics
FOR
Widely scattered market
Informed buyers
Repeat buyers
Advertising
Sales Promotion
Less Personal Selling
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
D Type of Buying DecisionAdvertising
Sales PromotionType ofType of
Buying DecisionBuying Decisionaffectsaffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
affectsaffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplex
RoutineRoutine
Personal Selling
Not Routineor Complex
Not Routineor Complex
Advertising
Public Relations
420Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
E Available FundsE Available Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 97copy2003 South-Western
Slide 18-35
FIGURE 18-5 FIGURE 18-5 A comparison of push and pull promotional strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 98copy2003 South-Western
Push PolicyPush Policy
Promotion policy used only with the next partner in the distribution channel
Manufacturers PUSH a product to the retailers for salehellip
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
Chapter Version 3e 99copy2003 South-Western
Pull PolicyPull Policy
Promotion policy designed to create consumer interest
When a product is consumer driven or PUSHED into a storehellip
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
F Push and Pull Strategies
Manufacturerpromotes to wholesaler
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Retailer promotes toconsumer
Consumerbuys from
retailer
Consumerbuys from
retailer
PUSH STRATEGY
Orders to manufacturer
Manufacturerpromotes to
consumer
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Consumer demands product
from retailer
Retailer demands product
from wholesaler
Retailer demands product
from wholesaler
Wholesaler demands
product frommanufacturer
Wholesaler demands
product frommanufacturer
Orders to manufacturer
PULL STRATEGY
421Learning Learning Objective Objective 77
Describe the factors that affect the promotional mix
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
101101
Ethical Aspects of Ethical Aspects of Advertising and Advertising and PromotionPromotion
Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Advertising and Promotion McGraw-HillIrwincopy 2004 The McGraw-Hill Companies Inc Chapter 22 Hill Companies Inc Chapter 22
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
102102
Advertising and EthicsAdvertising and Ethics
ProponentsProponents Encourages a Encourages a
standard of living standard of living improvementimprovement
Produces jobsProduces jobs Promotes competitionPromotes competition
CriticsCritics Creates needs and Creates needs and
faultsfaults More propaganda More propaganda
than informationthan information Promotes materialismPromotes materialism
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
103103
Ethics in PromotionEthics in Promotion
Ethics Moral principles and Ethics Moral principles and values that govern the actions of values that govern the actions of and individual or group individual and individual or group individual groupgroup
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
104104
Ethics in PromotionEthics in Promotion
Not all issues can be regulatedNot all issues can be regulated A marketing or promotion action may be A marketing or promotion action may be
legal but not considered ethicallegal but not considered ethical Marketers must make decisions Marketers must make decisions
regarding the appropriateness of their regarding the appropriateness of their actionsactions
Companies are scrutinized for their ethics Companies are scrutinized for their ethics
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
105105
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptiveAdvertising as untruthful or deceptive Advertising as offensive or in bad tastendashAdvertising as offensive or in bad tastendash Advertising of personal productsndashSexual appealsAdvertising of personal productsndashSexual appeals Advertising and ChildrenAdvertising and Children Social and Cultural ConsequencesndashMaking people buy Social and Cultural ConsequencesndashMaking people buy
things they donrsquot needndashEncouraging materialismndashthings they donrsquot needndashEncouraging materialismndashStereotypingndashAdvertisingsrsquo influence on the mediaStereotypingndashAdvertisingsrsquo influence on the media
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
106106
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as untruthful or deceptivendashAdvertising as untruthful or deceptivendash General mistrust of adsGeneral mistrust of ads
ndashndashDeliberately untruthful or misleading vs Deliberately untruthful or misleading vs pufferypuffery
Problems often more at local level rather Problems often more at local level rather than nationalthan national
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
107107
Social and Ethical Criticisms Social and Ethical Criticisms of Promotionof Promotion
Advertising as offensive in bad taste or Advertising as offensive in bad taste or irritatingirritating
Advertising of personal productsAdvertising of personal products Sexual appealsSexual appeals
10487071048707Suggestive demeaning raunchySuggestive demeaning raunchy
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
108108
Many people found Benettonrsquos ldquoDeath Rowrdquo ad campaign offensive
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
109109
Children and PromotionChildren and Promotion
Childrens TV Watching BehaviorChildrens TV Watching Behavior Children between ages 2-11 watch on Children between ages 2-11 watch on
average 215 hours of TV per week and may average 215 hours of TV per week and may see 22000 commercials per yearsee 22000 commercials per year
Television is an important source of Television is an important source of information for children about productsinformation for children about products
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
110110
Children and Children and PromotionPromotion
Some studies have shownhellip Some studies have shownhellip Children lack experience and knowledge to Children lack experience and knowledge to
evaluate advertising criticallyevaluate advertising critically They can not differentiate between They can not differentiate between
commercials and program (fantasy vs commercials and program (fantasy vs reality)reality)
Children are vulnerable to advertisingChildren are vulnerable to advertising
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
111111
Children and PromotionChildren and Promotion
helliphelliphelliphellipwhile other studies argue thatwhile other studies argue that Children must learn through the Children must learn through the consumer consumer
socialization processsocialization process need to acquire need to acquire skills to function in the marketplace skills to function in the marketplace
Acquired skills have helped teens evaluate Acquired skills have helped teens evaluate ads and recognize persuasion techniquesads and recognize persuasion techniques
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
112112
Children and PromotionChildren and Promotion
From ADTextFrom ADText
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
113113
StereotypingStereotyping
Portrayal of womenPortrayal of women Gender stereotypingGender stereotyping Portrayal of women as sex objectsPortrayal of women as sex objects Role portrayal of women to reflect changing Role portrayal of women to reflect changing
role in societyrole in society Blacks and HispanicsBlacks and Hispanics GaysGays ElderlyElderly
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
114114
Do You Agree With Leo Burnett
ldquoldquoIt must be said that without advertising It must be said that without advertising we would have a far different nation and we would have a far different nation and one that would be much the poorer-not one that would be much the poorer-not merely in material commodities but in merely in material commodities but in the life of the spiritrdquothe life of the spiritrdquo
These excerpters are from a speech given by Leo Burnett on the American These excerpters are from a speech given by Leo Burnett on the American Association or Advertising Agenciesrsquo 50th anniversary April 201967Association or Advertising Agenciesrsquo 50th anniversary April 201967
- Marketing Communications amp PROMOTIONAL MIX
- Promotion
- Promotional Strategy
- Slide 32
- Slide 33
- Slide 34
- Slide 35
- 1 Personal Selling
- 2 Advertising
- Advertising Media
- Advertising
- 3 Public Relations
- Slide 48
- 4 Sales Promotion
- Integrated Marketing Communications
- IMC Popularity Growth
- Communication
- Slide 75
- Goals and Tasks of Promotion
- Slide 82
- Slide 83
- Slide 84
- The AIDA Concept
- THE AIDA CONCEPT
- A Nature of the Product
- Learning Objective
- C Target Market Characteristics
- D Type of Buying Decision
- E Available Funds
- F Push and Pull Strategies
top related