1. Unit 12
Promotional Tools

2. Teaching Objective
This unit aims to help students to
gain knowledge of different promotional tools and promotion strategies; and
learn how to promote various new products or services

3. Unit content
Promoting a new product
promotional strategies

4. The project to be accomplished
In a small group of 4-5 classmates, choose one product from the list below, decide what is special about it, and which tools you would use to promote it. Imagine that you have a generous budget, and are thus able to employ several different tactics.
Prepare a 10-minute presentation about your work results.
 A new, up-market health and fitness club
A new brand of jeans, manufactured by a new (and therefore unknown) company
A new, fashionable but inexpensive range of quartz watches
Potatoes, to be sold in supermarkets
A new taxi company in your city.

5. Company Orientations Towards the Marketplace
Production Concept
Consumers prefer products that are
widely available and inexpensive
Product Concept
Consumers favour products that
offer the most quality, performance,
or innovative features
Selling Concept
Consumers will buy products only if
the company aggressively
promotes/sells these products
Focuses on needs/ wants of target
markets & delivering value
better than competitors
Marketing Concept

6. The Four Ps Marketing Mix Product Place Promotion Price Conven- ience
Customer
Solution
Customer
Cost
Communication

7. Product Process Price Place Promotion
Marketing Mix
Product
Process
Price
Participation
Place
Physical
Evidence
Promotion

8. Sales and Profits Over the Product’s Life From Introduction to Decline
The Product Life-Cycle
This CTR corresponds to Figure 9-2 on p. 288 and relates to the material on pp
Instructor’s Note: This CTR can be used to overview the life cycle concept. Strategies appropriate for each stage are discussed on the following CTRs.
Product Life Cycle
Sales and Profits Over the Product’s Life From Introduction to Decline
Sales and
Profits ($)
Sales
Product Life Cycle Stages
Product Development. Development begins when the company finds and develops a new product idea. During development the product has costs but no sales. Development costs must be strategically weighed against the projected length of the product's PLC.
Introduction. During the introduction of new products initial sales growth is slow as the market is just becoming aware of the product. Profits are usually nonexistent at this stage due to heavy promotional spending.
Growth. This stage is characterized by rapid market acceptance of the product and increasing profits.
Maturity. In maturity there is a slowdown in sales growth as the product has achieved acceptance by most potential customers. Profits may level off or decline as marketing costs increase to defend existing market share.
Decline. In this period sales begin to fall off and profits decline dramatically.
Profits
Time
Product
Develop-
ment
Introduction
Growth
Maturity
Decline
Losses/
Investments ($)

9. Major Promotional Tools
Personal
Selling
Advertising
Sales
Promotion
Public
Relations

10. Major Public Relations Tools
Web Site
News
Public
Service
Activities
Speeches
Corporate
Identity
Materials
Father of PR was Edward Bernays, turns out he was Freud’s nephew! Value of some good brand publicity/movie placements:
SPECIAL EVENTS:
Reeses Pieces sales jumped 85% after E.T.
Mumford High sold $1M in school shirts after
Beverly Hills Cop
CA. Raisin Board paid $25K for bus-stop sign and raisin eating scene in Back to the future.
Coke and Pepsi scout out roles full time.
Special
Events
Audiovisual
Materials
Written
Materials

11. Sales Promotions
Free samples
Coupons
Price reductions
Competitions …

12. Customer Promotions Consumer-Promotion Objectives
Consumer-Promotion Tools
Entice Consumers to
Try a New Product
Point-of-Purchase
Displays
Premiums
Price Packs
Cash Refunds
Coupons
Samples
Patronage Rewards
Games
Sweepstakes
Contests
Advertising
Specialties
Lure Customers Away
From Competitors’ Products
Get Consumers to “Load Up’
on a Mature Product
Hold & Reward Loyal
Customers
Consumer Relationship
Building

13. Trade Promotions Trade-Promotion Tools Trade-Promotion Objectives
Specialty
Advertising
Items
Contests
Free Goods
Buy-Back
Guarantees
Allowances
Price-Offs
Patronage Rewards
Push Money
Discounts
Premiums
Displays
Persuade Retailers or
Wholesalers to Carry a Brand
Give a Brand Shelf Space
Promote a Brand in
Advertising
Push a Brand to Consumers

14. 1. Promoting a new product

15. 1a Listening
Listen to Jogishwar Singh explaining the promotional strategies for the trial launch of Fresh Fries. Tick the topics mentioned in the interview

16. 1b. Comprehension
1). What do you think Jogishwar means by “launching a media blitz”?
2). When will the company start to use advertising?
3). According to Jogishwar, what is the difference between advertising and publicity?

17. 2. Promotional strategies

18. 2a Reading and text exploring
 Read the text and filling in the missing words.

19. Paragraph 1
1.      Marketing concept: the marketing idea of ‘make what you can sell rather than sell what you make’
2.      attractively priced product
3.      PLC: product life cycle (introduction, growth, maturity, decline) 产品生命周期
4.      product / brand awareness 产品/品牌意识
5.      inform the potential customers about …

20. Paragraph 2
4Ps formulation (marketing mix): product, place, promotion, price 市场营销组合
major promotional tools: advertising, public relations, sales promotion, personal selling.
marketers have to decide which tools to use, and in what proportion.

21. Paragraph 3 public relations (PR) 公共关系 publicity: 宣传推广
medium: 媒介 (pl) media / mediums
public awareness

22. Paragraph 4
tactics: the art of using existing means to get a desired result 策略，手段
stimulate: to increase in activity 增强，促进。。。之活动
The cold air stimulates the blood
generate: to cause to exist
the initial trial of a new product: buy/try a new product for the first time
try out: to test (sb. Or sth) by use and experience 考验
The idea seems fine but we need to try it out in practice.
brand-conscious brand-switchers:
to counter a promotion by a competitor
loss-leader pricing 亏本出售

23. Paragraph 5
off-season: 淡季
brand loyalty: 品牌忠诚

24. Paragraph 6 sparingly 节俭地，少量地使用 to praise ~ 吝于赞美
complement: n. (~ to) sth that completes or makes perfect 补充物，使完备之物
A fine wine is a ~ to a good meal 美食加上美酒才算完备
Complement: v. to make sth complete 使完备
This wine ~s the food perfectly. 用这酒配这菜，相得益彰。
channel of information: 信息渠道

25. 2b. Summarizing Complete the sentences to summarize the text:
When a new product is launched, the producer has to inform customers about its existence and develop brand awareness.
Promotion is one of the four elements of the marketing mix; sales promotions are one of four different promotional tools.
The advantages of publicity include the fact that it is much cheaper than advertising, and can have a better impact, because it seems that people are more likely to read and believe publicity than advertising.

26. The four stages of the standard product life cycle (excluding the pre-launch development stage) are introduction, growth, maturity and decline.
Reasons to offer temporary price reductions include attracting price-conscious brand-switchers, offsetting a promotion by a competitor, and, for stores, attracting customers by way of “loss leaders”.
Sales promotions need not only be aimed at customers; they can also be used with distributors, dealers and retailers, and with a company’s sales force.
7. Apart from selling a company’s products, sales representatives bring information back to a company form its customers, including ideas for new products.

27. 2c. Discussion  What kind of sales promotions are you receptive to?
coupons giving a price reduction?
free samples?
discounts for buying a large quantity?
price reductions in shops?
packets offering “20% Extra”?
competitions?

28. 2d. Vocabulary keys: competitors word-of-mouth advertising
brand-switcher
points of sale
brand name
line-stretching
packaging
product improvement
media plan

29. 2e. Case study: Promotional strategies
In a small group of 4-5 classmates, choose one product from the list below, decide what is special about it, and which tools you would use to promote it. Imagine that you have a generous budget, and are thus able to employ several different tactics.
Prepare a 10-minute presentation about your work results.
 A new, up-market health and fitness club
A new brand of jeans, manufactured by a new (and therefore unknown) company
A new, fashionable but inexpensive range of quartz watches
Potatoes, to be sold in supermarkets
A new taxi company in your city

30. Project time!!