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*Chapter Sixteen

Using Effective

Promotions

Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

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*Profile

• Joined the Girl Scouts after developing campaigns for American Express and Campbell’s Soup.

• Her biggest challenge is to communicate with girls through channels unheard of when the organization was formed.

LAUREL RICHIEGirl Scouts of America

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*Promotion and the Promotion Mix

• Promotion Mix -- The combination of promotional tools an organization uses; the traditional mix includes:

PROMOTION in an ORGANIZATION LG1

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*Promotion and the Promotion Mix

• Integrated Marketing Communication (IMC) -- Combines the promotional tools into one comprehensive strategy. IMC is used to:- Create a positive brand image.

- Meet the needs of consumers.

- Meet the strategic marketing and promotional goals of the firm.

INTEGRATED MARKETING COMMUNICATION (IMC) LG1

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*Promotion and the Promotion Mix

1. Identify a target market

2. Define objectives

3. Determine a promotional budget

4. Develop a unifying message

5. Implement the plan

6. Evaluate the plan

STEPS in a PROMOTIONAL CAMPAIGN LG1

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1. Plan: What should your mailing accomplish?

2. Get the Right List: The better the list, the better your chance of success.

DEAR MR. POSTMAN…Steps in Launching a Direct-Mail Campaign

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Promotion and the Promotion Mix

3. Stand Out: Make your ad like no other.

4. Get Help: Contact a marketing firm with direct mail experience.

5. Follow Up: One mailing is not enough.

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*Advertising: Informing, Persuading and Reminding

• Advertising -- Paid, non-personal communication through various media by organizations and individuals who are in some way indentified in the message.

• Major goals of advertising:- Inform- Persuade- Remind

ADVERTISING in the FIRMLG2

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*Advertising: Informing, Persuading and Reminding

• Total advertising expenditures exceed $294 billion yearly.

• Consumers benefit because production costs of TV programs, radio programs, newspapers and magazines are paid for by advertisers.

• Marketers choose ad media that will reach the target market.

IMPACT of ADVERTISINGLG2

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*I’LL SPONSOR YOUThe Price of Sports Endorsements

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Source: Conde Nast Portfolio.

Athlete Sport Amount per Deal Companies

Tiger Woods Golf $ Several Million Nike, Gatorade, AT&T

Yao Ming Basketball $1 - $4 Million McDonald’s Visa, Apple

Michael Phelps Swimming $1 - $4 Million AT&T, PowerBar

Lebron James Basketball $ Several Million Coca-Cola, Microsoft, Nike

Shawn Johnson Gymnastics $100,000 - $500,000

Adidas, McDonalds, Longines

Advertising: Informing, Persuading and Reminding

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*MAJOR CATEGORIES of

ADVERTISING LG2

Advertising: Informing, Persuading and Reminding

Category What it is

Retail From retail stores to consumers

Trade From manufacturers to wholesalers and retailers

B2B From manufacturers to other manufacturers

Institutional Creates a desirable image for an organization

Product Creates a desirable image for a product or service

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*MAJOR CATEGORIES of ADVERTISING

(Continued) LG2

Advertising: Informing, Persuading and Reminding

Category What it is

Advocacy Supports a particular view of an issue

Comparative Compares competing products

Interactive Customer-oriented ads that allows customers to choose information to receive

Online Computer ads featured on different sites

Mobile Ads that reach consumers on cell phones

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*Advertising: Informing, Persuading and Reminding

ADVERTISING EXPENDITURE by MEDIA in $ MILLIONS LG2

Rank MediaProjected 2008 Spending

% of Total Ad Spending

1 Direct Mail $63,732 21.6

2 Broadcast TV 48,300 16.4

3 Newspaper 42,147 14.3

4 Cable TV 21,718 7.4

5 Radio 18,635 6.3

6 Yellow Pages 14,705 5.0

7 Consumer Magazine 14,106 4.8

8 Internet 12,722 4.3

Other 58,311 19.8

Total 294,376 100.016-12

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• “Everybody doesn’t like something, but nobody doesn’t like ___________.”

• “We bring good things to life.”• “It takes a licking and keeps on ticking.”• “With a name like _________, it has to be good.”• “Good to the last drop.”• “Betcha can’t eat just one!”• “Because you’re worth it.”

MATCH GAMEMatch the Company with the Slogan

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Advertising: Informing, Persuading and Reminding

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*IT’S a DOG’S LIFE

Famous and Not-so-Famous Dogs in AdvertisingLG2

Pooch Company

Nipper RCA

Tige Buster Brown Shoes

Chihuahua Taco Bell

Spuds McKenzie Bud Light

McGruff The Crime Dog

Duke Bush’s Beans

Bullseye Target

Advertising: Informing, Persuading and Reminding

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*Television Advertising

• TV advertising is still the dominant media.

• Digital Video Recorders (DVRs) challenge TV advertising because viewers can skip them.

• Product Placement -- Advertisers pay to put their products into TV shows and movies where the audience will see them.

POPULAR ADVERTISING MEDIALG2

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*Infomercials and Online Advertising

• Infomercial -- A full length TV program devoted exclusively to promote a particular product.

• Online ads are attempts to get potential customers to a website to learn about a product.

INFOMERCIALS and ONLINE ADVERTISING LG2

• Interactive Promotion -- Allows marketers to open a dialogue between buyers and sellers and let them work together to create a beneficial exchange.

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• Veg-O-Matic• Ginsu Knives• The Clapper• Thigh Master• George Foreman Grill• Bowflex

INFOMERCIAL HALL of FAMEThe Biggest Hits Over the Past 40 Years

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Infomercials

Source: Fortune Magazine, April 13, 2009.

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*Global Advertising

• Requires marketers to develop a single product and promotional strategy to implement worldwide.

• Problems can arise in global markets with using one advertising campaign in all countries - especially bad translations.

GLOBAL ADVERTISINGLG2

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• Marketers are gaining a competitive advantage by touting their efforts for the environment.

• Mars Drinks promotes its efforts to use less water, send less waste to landfills and help customers reduce their own energy waste.

• First Global Direct competes with large rivals because of their efforts to make operations more eco-friendly.

FINDING a COMPETITIVE ADVANTAGE in SUSTAINABILITY

Thinking Green

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*Personal Selling: Providing Personal Attention

• Personal Selling -- The face-to-face presentation and promotion of a product, including the salesperson’s search for new prospects and follow-up service.

PERSONAL SELLINGLG3

• Salespeople need to listen to customer needs, help reach a solution and do everything possible to make the transaction as simple as possible.

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*Steps in the Selling Process

• Prospecting -- Researching potential buyers and choosing those most likely to buy.

PROSPECTING and QUALIFYING in B2B SELLING LG3

• Qualifying -- Making sure customers have a need for a product, the authority to buy and the willingness to listen to a sales message.

• Prospect -- A customer who meets the qualifying criteria.

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*Steps in the Selling Process

1. Pre-approach

2. Approach

3. Make a presentation

4. Answer objections

5. Close the sale• Trial Close -- A statement or question that

moves the process toward the purchase.

6. Follow up

STEPS in the B2B SELLING PROCESS LG3

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• Know your competition

• Understand your customer’s business

• Differentiate your product or service

• Sell to the people most likely to buy

• Build relationships

• Put the right people in the right selling spots

BUY THIS!Successful Selling Strategies

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Steps in the Selling Process

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• Not feeling the customer’s pain

• Making money is the only goal

• Seeing sales as just a job

• Getting upset during the presentation

• Failing to properly prepare or over-preparing

• Not being yourself

• Neglecting the relationship

WHOOPS!Sales Slip-Ups

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Steps in the Selling Process

Source: Fortune Magazine.16-24

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*STEPS in the B2C

SELLING PROCESS LG3

Steps in the Selling Process

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*Progress Assessment

• What are the four traditional elements of the promotion mix?

• What are the three most important advertising media in order of dollars spent?

• What are the seven steps in the B2B selling process?

PROGRESS ASSESSMENT

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*Public Relations: Building Relationships

• Public Relations (PR) -- Evaluates public attitudes, changes policies and procedures in response to the public, and executes a program of action and information to earn public understanding and acceptance.

• 3 steps of a good PR program:1. Listen to the public

2. Change policies and procedures

3. Inform people you’re responsive to their needs

USING PUBLIC RELATIONS in PROMOTION LG4

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*Publicity: The Talking Arm of PR

• Publicity -- Any information about an individual, product or organization that’s distributed to the public through the media and is not paid for or controlled by the seller.

• Advantages of Publicity:• Free

• Reaches people who would not look at an advertisement

• More believable than advertising

PUBLICITYLG4

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*Publicity: The Talking Arm of PR

• No control over whether the media will use a story or when they may release it.

• It can be good or bad.

• Once a story has been run, it isn’t likely to run again.

DISADVANTAGES of PUBLICITYLG4

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• Sales Promotion -- The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities.

SALES PROMOTIONSLG5

Sales Promotion: Giving Buyers Incentives

• Categories of Sales Promotions:1. B2B Sales

Promotions

2. Consumer Sales Promotions

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• Coupons

• Demonstrations

• Sampling

• Sweepstakes

• In-store Displays

• Contests

SOME KEY CONSUMER PROMOTIONS LG5

Sales Promotion: Giving Buyers Incentives

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• Coupons, Inc

• EverSave

• RetailMeNot

• CouponCabin

CLIP THESEMost Visited U.S. Coupon Clearing Sites

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Sales Promotion: Giving Buyers Incentives

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*Progress Assessment

• What are the three steps in setting up a public relations program?

• What are the sales promotion programs used to reach consumers?

• What sales promotion programs are used to reach businesses?

PROGRESS ASSESSMENT

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*Word of Mouth and Other Promotional Tools

• Word-of-Mouth Promotion -- People tell others about products they have purchased.

• Word-of-Mouth is important for products like:- Restaurants

- Daycare and Eldercare

- Car Repair Shops

- Hair Stylists

- Hotels

USING WORD-of-MOUTH PROMOTION LG6

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*Viral Marketing

• Viral Marketing -- Paying customers to say positive things on the Internet or setting up multiple selling schemes whereby consumers get commissions.

• People who promote through viral marketing often receive SWAG which can include free tickets, shirts, and other merchandise.

EMERGING PROMOTIONAL TOOLS LG6

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*Blogging, Podcasting and E-mail Promotions

• Blog -- Short for web log; an online diary that looks like a webpage but is easier to create and update by posting text, photos, videos, or links.

• Podcasting -- A way to distribute audio and video programs via the Internet.

• Email promotions increase brand awareness among commercial suppliers.

BLOGS, PODCASTS, and E-MAILSLG6

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• Amy Scherber of Amy’s Bread can’t afford to outsource her promotions, so she needs to get creative.

• She sends newspaper editors stories about her company and has an assortment of company shirts.

• She builds strong word-of-mouth by keeping in touch with her community members.

FRESH-BAKED PROMOTIONSpotlight on Small Business

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*Managing the Promotion Mix: Putting it All Together

• Push Strategy -- Producers use advertising, personal selling, sales promotion, and other tools to get their products stocked on shelves.

• Pull Strategy -- Directs heavy advertising and sales promotions efforts towards consumers and gets the public to request their products from retailers.

• Pick Strategy -- Refers to consumers who pick out their products from online outlets.

PUSH, PULL, AND PICK PROMOTIONAL STRATEGIES LG6

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• Agencies like Publicis Groupe knew they had to move forward into the digital age.

• Publicis bought Digitas, an interactive ad agency, and tried to blend the firms.

• Publicis created the Global Marketing Navigator and simplifies masses of data from clients and measures the program’s effectiveness.

GOING DIGITALReaching Beyond Our Borders

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*Progress Assessment

• What’s viral marketing?

• What are blogging and podcasting?

• Describe a push strategy, a pull strategy and the pick strategy.

PROGRESS ASSESSMENT

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