Chpt 9 and Chpt 10

Product
Chpt 11

Place
Promotion
Chpt 13, Basic Promotion
Intergrated Marketing Communications

Chpt 14, Personal Selling

Chpt 15, Advertising & Sales Promotion
Chpt 16,

Price

Promotion

Slide 2

Promotion

Personal Selling

Mass Selling
Advertising
Publicity
Sales Promotion

Chpt 13 in the Marketing 106 course

Copyright,

Promotion

Slide 3

Promotion
communication of information
influence the buyer
3 methods
Personal Selling
Mass Selling
Sales Promotion
Chpt 13 in the Marketing 106 course

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Promotion

Slide 4

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
Chpt 13 in the Marketing 106 course

Copyright,

Promotion

Slide 5

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

Chpt 13 in the Marketing 106 course

Copyright,

Promotion

Slide 6

Advertising
the main form of mass selling
any paid form of nonpersonal
communication
eg. Techniques include billboard
ads and TV commercials

Chpt 13 in the Marketing 106 course

Copyright,

Promotion

Slide 7

Publicity
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.

Chpt 13 in the Marketing 106 course

Copyright,

Promotion

Slide 8

Publicity
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

Chpt 13 in the Marketing 106 course

Copyright,

Promotion

Slide 9

Publicity
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
Chpt 13 in the Marketing 106 course

Copyright,

Promotion

Slide 10

Promotion People
Sales Managers
Advertising Managers
Sales Promotion Managers

Chpt 13 in the Marketing 106 course

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Promotion

Slide 11

Promotion People
Sales Managers
Are concerned with managing
personal selling
In small companies this person also
does the advertising and sales
promotion
Chpt 13 in the Marketing 106 course

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Promotion

Slide 12

Promotion People
Advertising Managers
They manage the mass selling activities
They chose the company to make the
commercials
Pick the billboard signs etc.
If the company is big enough they hire an
outside agency
They may also do publicity as well
Chpt 13 in the Marketing 106 course

Copyright,

Promotion

Slide 13

Promotion People
Sales Promotion Managers
They manage the Sales Promotion
activities
They decide about in-store coupons,
prizes, contests etc.
They spend a lot of time visiting the retail
outlets where the product is sold
Chpt 13 in the Marketing 106 course

Copyright,

Promotion

Slide 14

People in Sales Promotion

Sales Promotion Managers
- they deal with
Point-of-purchase advertising
specialty advertising
samples
coupons
premiums
loyalty points / air miles
rebates
contests
Page 455

Chpt 13 in the Marketing 106 course

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Promotion

Slide 15

Sales Promotion includes:

Point-of-purchase advertising

specialty advertising

samples

coupons

premiums

loyalty points / air miles

rebates

contests

Chpt 13 in the Marketing 106 course

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Promotion

Chpt 13 in the Marketing 106 course

Slide 16

Copyright,

Promotion

Slide 17

Relationship between Advertising and the Product Life Cycle

Not mentioned in your textbook

Chpt 13 in the Marketing 106 course

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Promotion

Slide 18

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

Chpt 13 in the Marketing 106 course

Page 458 459

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Promotion

Slide 19

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

Chpt 13 in the Marketing 106 course

Page 458 459

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Promotion

Slide 20

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 products or
services name in front of the public.

Used in the Maturity Period and the Decline Stage of the

PLC.
Chpt 13 in the Marketing 106 course

Copyright,

Promotion

Chpt 13 in the Marketing 106 course

Slide 21

Copyright,

Promotion

Slide 22

Pushing through the promotion channel

Producer customer

personal selling

2 wholesaler

retailer

Promotion techniques used

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

run contests for salespeople to win prizes for selling the product

Chpt 13 in the Marketing 106 course

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Promotion

Slide 23

Pulling through the promotion channel

Producer customer

personal selling

2 wholesaler

retailer

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
give free samples to potential customers

Chpt 13 in the Marketing 106 course

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Promotion

Slide 24

Pulling through the promotion channel

Producer customer

personal selling

2 wholesaler

retailer

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.
Chpt 13 in the Marketing 106 course

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Promotion

Slide 25

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.
Chpt 13 in the Marketing 106 course

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Promotion

Slide 26

Comparison of Direct Marketing and General Advertising

Direct Marketing

General Advertising

Selling to individuals. Customers are

often identifiable by name, address, and
purchase behaviour.

Mass selling. Buyers identified as broad

groups sharing common demographic and
psychographic characteristics.

Products have added value or service.

Distribution is important product benefit.

Product benefits do not always include

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 an

immediate order or inquiry.

Advertising used for cumulative effect

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

product brought unseen. Recourse is
distant.

Consumers feel less risk have direct

contact with the product and direct
recourse.
Not in your text

Chpt 13 in the Marketing 106 course

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Promotion

Slide 27

Adoption Process
Innovators
Early Adopters - sales people concentrate their efforts
here

Early majority
Late majority
Laggards, or nonadopters
Chpt 13 in the Marketing 106 course

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Promotion

Slide 28

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!
Chpt 13 in the Marketing 106 course

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Promotion

Slide 29

Setting the promotion

budget
Other methods - used in real world
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

Chpt 13 in the Marketing 106 course

Copyright,