1. Chpt 9 and Chpt 10 Product Chpt 11 Place Chpt 14, Chpt 15, Chpt 16 Promotion Chpt 17, Chpt 18 Price

2. Slide 2 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Promotion Personal Selling Mass Selling Advertising Publicity Sales Promotion

3. Slide 3 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Promotion communication of information influence the buyer 3 methods Personal Selling Mass Selling Sales Promotion

4. Slide 4 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Personal Selling direct communication between seller and buyer face2face contact Usually used to sell industrial goods and services Also used to sell some expensive consumer items, eg. Cars, computer systems

5. Slide 5 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Mass Selling communicating with large numbers of potential customers “non”-personal selling used when the target market is large and dispersed Advertising is a form of Mass Selling

6. Slide 6 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Advertising the main form of mass selling any paid form of nonpersonal communication eg. Techniques include billboard ads and TV commercials

7. Slide 7 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College The generation of awareness about a product beyond regular advertising methods. Usually less costly than advertising because sometimes the message is spread for free by a newspaper article or TV story. Page 453 Publicity

8. Slide 8 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Examples of Publicity famous person photographed using your product your product mentioned in National News in a positive way your product featured in a movie TV commentary about aspects of your product trade magazines carrying a story eg. Road and Track doing a feature on the new Landrover Publicity

9. Slide 9 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Publicity can be negative eg. If a famous movie star gets electrocuted using your product, this can cause people to NOT want to buy it - this would be a major problems eg. If your product is sabotaged - this could include tampering with medical products ie. Tylenol eg. If there are negative rumours about the ingredients in your product eg. If there are negative ingredients about the moral aspects of your company Publicity

10. Slide 10 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Promotion People Sales ManagersSales Managers Advertising ManagersAdvertising Managers Sales Promotion ManagersSales Promotion Managers Page 369

11. Slide 11 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Promotion People Sales Managers Are concerned with managing personal sellingAre concerned with managing personal selling In small companies this person also does the advertising and sales promotionIn small companies this person also does the advertising and sales promotion Page 369

12. Slide 12 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Promotion People Advertising Managers They manage the mass selling activitiesThey manage the mass selling activities They chose the company to make the commercialsThey chose the company to make the commercials Pick the billboard signs etc.Pick the billboard signs etc. If the company is big enough they hire an outside agencyIf the company is big enough they hire an outside agency They may also do publicity as wellThey may also do publicity as well Page 369

13. Slide 13 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Promotion People Sales Promotion Managers They manage the Sales Promotion activitiesThey manage the Sales Promotion activities They decide about in-store coupons, prizes, contests etc.They decide about in-store coupons, prizes, contests etc. They spend a lot of time visiting the retail outlets where the product is soldThey spend a lot of time visiting the retail outlets where the product is sold Page 369

14. Slide 14 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Sales Promotion Managers - they deal with Point-of-purchase advertising specialty advertising samples coupons premiums loyalty points / air miles rebates contests People in Sales Promotion Page 455

15. Slide 15 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Sales Promotion includes: Point-of-purchase advertisingPoint-of-purchase advertising specialty advertisingspecialty advertising samplessamples couponscoupons premiumspremiums loyalty points / air milesloyalty points / air miles rebatesrebates contestscontests

16. Slide 16 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College

17. Slide 17 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Relationship between Advertising and the Product Life Cycle Not mentioned in your textbook

18. Slide 18 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Informing people have to know about it, in order to buy it Advertising that seeks to develop demand through presenting factual information on the attributes of a product or service. Tends to be used in promoting NEW products. Use in the Introductory Stage of PLC Page 458 - 459

19. Slide 19 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Persuading when competition offers similar product, you have to “persuade” them to try yours Advertising that emphasizes using words and/or images to try to create an image for a product and to influence attitudes about it. Used by Coke and Pepsi re: lifestyle ads. Used after the Introductory Stage of the PLC Page 458 - 459

20. Slide 20 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Reminding when new competition comes along, you have to “remind” customers of your greater experience, advantages etc. Advertising whose goal is to reinforce previous promotional activity by keeping the product’s or service’s name in front of the public. Used in the Maturity Period and the Decline Stage of the PLC. Page 458 - 459 Also Discussed in Chpt 16, page 520

21. Slide 21 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Page 372

22. Slide 22 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Effective Communication Noise Noise distractions that reduce the effectiveness of the communicationdistractions that reduce the effectiveness of the communication things which make an ad, useless because people don’t get the message clearlythings which make an ad, useless because people don’t get the message clearly eg. Competition from similar adseg. Competition from similar ads Page 460

23. Slide 23 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Effective Communication Encoding Encoding means to make a codemeans to make a code the process of making your message, and hoping you do it so it will be understoodthe process of making your message, and hoping you do it so it will be understood Page 373

24. Slide 24 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Effective Communication Decoding Decoding means to break a code into language you can understandmeans to break a code into language you can understand the process of the customer listening to a message, and being able to correctly figure out what the advertiser wants you to know, or dothe process of the customer listening to a message, and being able to correctly figure out what the advertiser wants you to know, or do Page 373

25. Slide 25 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Pushing through the promotion channel Pushing through the promotion channel Producer - personal selling 2 wholesaler retailer customer Promotion techniques used run ads in trade magazines to make wholesalers aware of the product run ads in trade magazines to make wholesalers aware of the product provide incentives to retailers to carry the item “… free case of drinks with each 2 cases it buys…” page 466 provide incentives to retailers to carry the item “… free case of drinks with each 2 cases it buys…” page 466 run contests for salespeople to win prizes for selling the product run contests for salespeople to win prizes for selling the product Page 379

26. Slide 26 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Potential Mail Recipients Once your name is on a list for a newspaper subscription, your name and address can be “sold” to another company who will mail you information to try and convince you to buy their product. Buying and selling lists (databases) of such names is big business.

27. Slide 27 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Comparison of Direct Marketing and General Advertising Direct MarketingGeneral Advertising Selling to individuals. Customers areMass selling. Buyers identified as broad often identifiable by name, address, andgroups sharing common demographic and purchase behaviour.psychographic characteristics. Products have added value or service.Product benefits do not always include Distribution is important product benefit.convenient distribution channels. The medium is the marketplace.Retail outlet is the marketplace. Marketer controls product until delivery.Marketer may lose control as product enters distribution channel. Advertising used to motivate anAdvertising used for cumulative effect immediate order or inquiry.over time to build image, awareness, loyalty, benefit recall. Purchase action deferred. Repetition used within ad.Repetition used over time. Consumers feel high perceived risk – Consumers feel less risk – have direct product brought unseen. Recourse iscontact with the product and direct distant.recourse. Not in your text

28. Slide 28 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Pulling through the promotion channel Pulling through the promotion channel Producer - personal selling 2 wholesaler retailer customer Promotion techniques used run TV commercials so customers directly learn about the product - then they go to the store and ask for it, or call around to find out where it is sold run TV commercials so customers directly learn about the product - then they go to the store and ask for it, or call around to find out where it is sold give free samples to potential customers give free samples to potential customers Page 380

29. Slide 29 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Pulling through the promotion channel Pulling through the promotion channel Producer - personal selling 2 wholesaler retailer customer Sometimes you do “pulling” when the Middlemen cannot be pushed, that is they already have a competitors product, so the way to get Middlemen to WANT to carry the product, is to have customers ask for it.

30. Slide 30 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Adoption Process InnovatorsInnovators Early Adopters - sales people concentrate their efforts hereEarly Adopters - sales people concentrate their efforts here Early majorityEarly majority Late majorityLate majority Laggards, or nonadoptersLaggards, or nonadopters Page 384

31. Slide 31 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Setting the promotion budget Most common method is based on using past percentages - that is to say,,,, If you sold $ 1,000,000 and you spent 20% on advertising, which = $200,000 then, if you spend $400,000 you should sell $2 million!

32. Slide 32 Chapter 14 Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College Setting the promotion budget Other methods - used in real world Matching what competition spends Matching what competition spends Based on what is required to get number of customers that will meet corporate objectives - called the Task Method - sometimes stated as a % of sales Based on what is required to get number of customers that will meet corporate objectives - called the Task Method - sometimes stated as a % of sales page 388page 388