P 8-1 Marketing Management 6th Edition Knowledge and Skills J. Paul Peter James H. Donnelly, Jr.

P 8-2 Chapter 8 Integrated Marketing Communications: Advertising and Sales Promotion

P 8-3 Some Strengths and Weakness of the Major Promotion Elements (continued) ElementStrengthsWeaknesses AdvertisingEfficient for reaching manyReaches many people who are buyers simultaneously, not potential buyers, ads are effective way to create subject to much criticism, image of the brand, flexible,exposure time is usually short, variety of media to choosepeople tend to screen out from.Advertisements, total cost may be high Personal Sales people can be persuasiveCost per contact is high sellingand influential, two-way salespeople may be hard to communication allows for recruit and motive, presenta- questions and other feedbacktion skills vary among sales- message can be targeted to people specific individuals SOURCE: Gilbert A. Churchill, Jr., and J. Paul Peter, Marketing: Creating Value for Customers, rev. ed. (Burr Ridge, IL:Richard D. Irwin, 1998), p. 453

P 8-4 Some Strengths and Weakness of the Major Promotion Elements Element Strengths Weaknesses SalesSupports short-term price Risks inducing brand-loyal promotionreductions designed to customers to stock up whilestimulate demand, varietynot influencing others, impactof sales promotion tools may be limited to short-term,available, effective in price-related sales promo-changing short-term behavior, tion may hurt brand image,easy to link to other com- easy for competitors to copymunications PublicityTotal cost may be low, media-Media may not cooperate, generated messages seen as heavy competition for media more credible than marketer-attention, marketer has little sponsored messages control over messages SOURCE: Gilbert A. Churchill, Jr., and J. Paul Peter, Marketing: Creating Value for Customers, rev. ed. (Burr Ridge, IL:Richard D. Irwin, 1998), p. 453

P 8-5 How Various Promotion Tools Might Contribute to the Purchase of a Hypothetical Product Personal selling Advertising Sales promotion Publicity To produce: AwarenessComprehensionConvictionOrdering Figure 8-1 Irwin/McGraw-Hill Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

P 8-6 Example of Sales Promotion Activities Aimed at final consumers or users Contests Coupons Aisle displays Samples Trade shows Point-of-purchasing materials Banners and streamers Trading stamps Sponsors Aimed at middleman Price deals Promotion allowances Sales contests Calendars Gifts Trade shows Meetings Catalogs Merchandising aids Aimed at companies own sales force Contests Courses Meetings Portfolios Displays Sales aids Training materials SOURCE: William D. Perreault, Jr. and E. Jerome McCarthy, Basic Marketing: A Global Managerial Approach, 12th ed. (Irwin, 1996), p. 422 Figure 8-2

P 8-7 The Sales Promotion Dilemma Other firmsOur firm Cut back promotions Maintain promotions Cut back promotions Maintain Promotion Higher profits for all Market share may not change: profits stay low Market share may go to other firms Market share may go to our firm Figure 8-3 SOURCE: George E. Belch and Michael A. Belch, Introduction to Advertising and Promotion: An Integrated Communications Perspective, 4th ed. (Burr Ridge, IL:Richard D. Irwin, 1998), p. 509.