1. ****** 16-1 1-1 McGraw-Hill/Irwin Understanding Business, 8e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Nickels McHugh McHugh ** Using Effective Promotional Techniques 16 CHAPTER * **

2. ****** 16-2 Traditional Promotional Mix Personal Selling Sales Promotion Public Relations Advertising Product

3. ****** 16-3 Steps In A Promotional Campaign 1.Identify the target market 2.Define the objectives 3.Determine the promotional budget 4.Develop a unifying message 5.Implement the plan 6.Evaluate effectiveness

4. ****** 16-4 Objectives of Integrated Marketing Build Brand EquityBuild Brand Equity Provide InformationProvide Information Manage Demand & Build SalesManage Demand & Build Sales Differentiate ProductsDifferentiate Products Influence Perceptions, Attitudes, & Buyer BehaviorInfluence Perceptions, Attitudes, & Buyer Behavior

5. ****** 16-5 Advertising Advertising media: Newspaper, television, radio, magazines, outdoor, direct mail, yellow-pages, InternetAdvertising media: Newspaper, television, radio, magazines, outdoor, direct mail, yellow-pages, Internet The growing use of InfomercialsThe growing use of Infomercials Moving to the InternetMoving to the Internet Global advertisingGlobal advertising

6. ****** 16-6 Centurys Top Ad Jingles You deserve a break todayYou deserve a break today Be all you can beBe all you can be Pepsi-Cola hits the spotPepsi-Cola hits the spot Mm Mm good!Mm Mm good! See the USA in your ChevroletSee the USA in your Chevrolet I wish I were an Oscar Mayer wienerI wish I were an Oscar Mayer wiener A little dabll do yaA little dabll do ya Double your pleasure, double your funDouble your pleasure, double your fun Its the real thingIts the real thing Winston tastes good like a cigarette shouldWinston tastes good like a cigarette should Source: Source: Advertising Age

7. ****** 16-7 Do Blatantly Sexy Ads Turn You Off? Source: Source: USA Today

8. ****** 16-8 Total Direct Advertising Expenditures Source: Source: The Direct Marketing Association, Advertising Age (accessed August 10, 2006)

9. ****** 16-9 Money Spent to Place Products In Billions Source: Source: PQ Media

10. ****** 16-10 Total Advertising Expenditures By Media Source: Source: Advertising Age, 2005 Expenditures of 100 Leading National Advertisers

11. ****** 16-11 Ad Spending Growth Source: Source: Advertising Age, 2005

12. ****** 16-12 Infomercials Grossing Over 1 Billion In Billions Source: Source: Business 2.0, June 2005

13. ****** 16-13 U.S. Online Ad Spending Source: Source: Investors.com; Advertising Age, 2005

14. ****** 16-14 Steps in the Selling Process (B2C) Start Approach Ask questions Make presentation Close sale Follow up

15. ****** 16-15 Steps in the Selling Process (B2B) 1.Prospect and Qualify 2.Preapproach 3.Approach 4.Make Presentation 5.Answer Objections 6.Close Sale 7.Follow Up

16. ****** 16-16 Public Relations Steps Listen to the public.Listen to the public. Change policies and procedures.Change policies and procedures. Inform people that youre being responsive to their needs.Inform people that youre being responsive to their needs.Publicity FreeFree More Effective Than AdvertisingMore Effective Than Advertising BelievableBelievable No ControlNo Control No RepetitionNo Repetition

17. ****** 16-17 Sales Promotion Techniques B2B Trade ShowsTrade Shows PortfoliosPortfolios DealsDeals CatalogsCatalogs ConventionsConventionsB2C CouponsCoupons Cents-off PromotionsCents-off Promotions SamplingSampling PremiumsPremiums SweepstakesSweepstakes ContestsContests BonusesBonuses CatalogsCatalogs DemonstrationsDemonstrations Special EventsSpecial Events LotteriesLotteries In-store DisplaysIn-store Displays

18. ****** 16-18 Tips on Issuing Coupons Coupons can be used as a Thank you for buying or a Stop and try us.Coupons can be used as a Thank you for buying or a Stop and try us. The value must be enough to attract customers.The value must be enough to attract customers. Use coupon promotions sparingly.Use coupon promotions sparingly. Get professional help to get maximum exposure.Get professional help to get maximum exposure. Color-code your coupons for different groups that use them.Color-code your coupons for different groups that use them.

19. ****** 16-19 Coupon Statistics Average Face Value 93 cents (2004); 46 cents (1990)93 cents (2004); 46 cents (1990) Amount saved in 2004 $2.9 billion$2.9 billion Number of coupons redeemed in America in 2004 3 billion3 billion Coupons rank 2 nd as purchase motivators (Largest: Free Samples) Source: St. Louis Post-Dispatch Everyday, July 2005

20. ****** 16-20 Sales Promotion Internal & ExternalInternal & External SamplingSampling Word-Of-MouthWord-Of-Mouth Viral Marketing/SwagViral Marketing/Swag BloggingBlogging PodcastingPodcasting

21. ****** 16-21 Putting it all Together Convince wholesalers and retailers to stock and sellConvince wholesalers and retailers to stock and sell Producer uses advertising, personal selling, sales promotion to convince the intermediariesProducer uses advertising, personal selling, sales promotion to convince the intermediaries Idea is to push the product through the distribution system to the storesIdea is to push the product through the distribution system to the stores Heavy advertisements and sales promotion effortsHeavy advertisements and sales promotion efforts Directed at consumers so that they will request the products from retailersDirected at consumers so that they will request the products from retailers Products are pulled down through the distribution systemProducts are pulled down through the distribution system