1. Using Effective Promotions
Chapter 16
Using Effective Promotions
Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin

2. LEARNING GOALS Chapter Sixteen
Identify the new and traditional tools that make up the promotion mix.
Contrast the advantages and disadvantages of various advertising media, including the Internet and social media.
Illustrate the steps of the B2B and B2C selling processes.
Describe the role of the public relations department, and show how publicity fits in that role.
Assess the effectiveness of various forms of sales promotion, including sampling.
Show how word of mouth, marketing, viral marketing, blogging, podcasting, and mobile marketing work.
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3. PROMOTION in an ORGANIZATION
Promotion and the Promotion Mix
PROMOTION in an ORGANIZATION
LG1
Promotion Mix -- The combination of promotional tools an organization uses. The traditional mix includes:
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4. INTEGRATED MARKETING COMMUNICATION (IMC)
Promotion and the Promotion Mix
INTEGRATED MARKETING COMMUNICATION (IMC)
LG1
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.
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5. FRESH-BAKED PROMOTION Spotlight on Small Business
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.
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6. STEPS in a PROMOTIONAL CAMPAIGN
Promotion and the Promotion Mix
STEPS in a PROMOTIONAL CAMPAIGN
LG1
Identify a target market
Define objectives
Determine a promotional budget
Develop a unifying message
Implement the plan
Evaluate effectiveness
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7. ADVERTISING in the FIRM
Advertising: Informing, Persuading and Reminding
LG2
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
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8. IMPACT of ADVERTISING
Advertising: Informing, Persuading and Reminding
LG2
Total advertising expenditures exceed $241 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.
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9. SOCIAL ADVERTISING
Advertising: Informing, Persuading and Reminding
LG2
Social media advertising is growing so fast, marketers can’t keep up.
Starbucks has over 12 million followers on Twitter.
McDonald’s has over 7 million fans on Facebook.
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10. MAJOR CATEGORIES of ADVERTISING
Advertising: Informing, Persuading and Reminding
MAJOR CATEGORIES of ADVERTISING c
LG2
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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11. MAJOR CATEGORIES of ADVERTISING (Continued)
Advertising: Informing, Persuading and Reminding
MAJOR CATEGORIES of ADVERTISING (Continued)
LG2
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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12. DEAR MR. POSTMAN… Steps in Launching a Direct-Mail Campaign
Promotion and the Promotion Mix
DEAR MR. POSTMAN… Steps in Launching a Direct-Mail Campaign
LG1
Plan: What should your mailing accomplish?
Get the Right List: The better the list, the better your chance of success.
Stand Out: Make your ad like no other.
Get Help: Contact a marketing firm with direct mail experience.
Follow Up: One mailing is not enough.
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13. POPULAR ADVERTISING MEDIA
Television Advertising
LG2
TV advertising is still the dominant media.
Digital Video Recorders (DVRs) challenge TV advertising because viewers can skip ads.
Product Placement -- Advertisers pay to put their products into TV shows and movies where the audience will see them.
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14. INFOMERCIALS and ONLINE ADVERTISING
LG2
Infomercial -- A full length TV program devoted exclusively to promote a particular product.
Online ads are attempts to get potential customers to a web site to learn about a product.
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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15. ONLINE EXPERIENCE How to Avoid Losing Customers Over a Bad Web Site
Infomercials and Online Advertising
LG2
Brand messaging is key.
Site must be easy to navigate.
Make sure calls to action are effective.
Users want fast, readable sites.
Users with disabilities should be able to navigate.
Source: Entrepreneur, October 2010.
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16. SOCIAL SCAMMERS How to Protect Yourself From Schemers
Be wary of requests for money transfers -- even from friends’ accounts.
Be wary when you use applications. Don’t give unnecessary information.
Use URL expanders to see the full address of links on friends’ pages.
Photo Courtesy of: Paul Klintworth
Source: Kiplinger’s Personal Finance, December 2010.
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17. MONITORING AD EFFECTIVENESS
Using Social Media to Monitor Ad Effectiveness
LG2
Dr. Pepper posts messages on Facebook and monitors the results from their over 8.5 million fans.
Richard Branson and Tony Hsieh all tweet their customer base to maintain two-way communication.
Photo Courtesy of: Brent Moore
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18. SOCIALLY SUPERIOR Lessons From the Wisdom of the Old Spice Man
Using Social Media to Monitor Ad Effectiveness
LG2
Create a strong persona.
Have customers play along through Twitter and Facebook.
Engage bloggers.
Personalize the experience.
Keep your videos short and sweet!
Photo Courtesy of: Dirk Houbrechts
Source: Entrepreneur, September 2010.
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19. GLOBAL ADVERTISING
Global Advertising
LG2
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.
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20. PROMOTION in RURAL INDIA (Reaching Beyond Our Borders)
India's 700 million rural consumers are spending more than ever.
International brands are sending salesmen to reach these customers by giving free Castrol oil changes for tractors, passing out bowls of Nestlé noodles, and selling Unilever soaps.
These salesmen must be aware of social customs to be successful.
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21. PERSONAL SELLING
Personal Selling: Providing Personal Attention
LG3
Personal Selling -- The face-to-face presentation and promotion of a product, including the salesperson’s search for new prospects and follow- up service.
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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22. STEPS in the B2C SELLING PROCESS
The Business-to-Consumer Sales Process
STEPS in the B2C SELLING PROCESS
LG3
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23. PROSPECTING and QUALIFYING in SELLING
Steps in the Selling Process
PROSPECTING and QUALIFYING in SELLING
LG3
Prospecting -- Researching potential buyers and choosing those most likely to buy.
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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24. BUY THIS! Successful Selling Strategies
Steps in the Selling Process
BUY THIS! Successful Selling Strategies
LG3
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
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25. WHOOPS! Sales Slip-Ups Not feeling the customer’s pain
Steps in the Selling Process
WHOOPS! Sales Slip-Ups
LG3
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
Source: Fortune Magazine.
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26. USING PUBLIC RELATIONS in PROMOTION
Public Relations: Building Relationships
LG4
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:
Listen to the public
Change policies and procedures
Inform people you’re responsive to their needs
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27. PUBLICITY
Publicity: The Talking Arm of PR
LG4
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
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28. DISADVANTAGES of PUBLICITY
Publicity: The Talking Arm of PR
LG4
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.
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29. SALES PROMOTIONS
Sales Promotion: Giving Buyers Incentives
LG5
Sales Promotion -- The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities.
Categories of Sales Promotions:
B2B Sales Promotions
Consumer Sales Promotions
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30. SOME KEY CONSUMER PROMOTIONS
Sales Promotion: Giving Buyers Incentives
LG5
Coupons
Demonstrations
Sampling
Sweepstakes
In-store Displays
Contests
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31. CLIP THESE Most Visited U.S. Coupon Clearing Sites
Sales Promotion: Giving Buyers Incentives
LG5
Coupons, Inc
EverSave
RetailMeNot
CouponCabin
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32. USING WORD-of-MOUTH PROMOTION
Word of Mouth and Other Promotional Tools
USING WORD-of-MOUTH PROMOTION
LG6
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
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33. EMERGING PROMOTIONAL TOOLS
Viral Marketing
LG6
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.
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34. Trends in Promotional Strategies
Blogging, Podcasting and Promotions
Trends in Promotional Strategies
LG6
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.
promotions increase brand awareness among commercial suppliers.
Mobile Media -- Marketers make use of cell phones to text customers about product offers and other company information
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35. PUSH, PULL, AND PICK PROMOTIONAL STRATEGIES
LG6
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 Economy -- Refers to consumers who pick out their products from online outlets.
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