i t ’s good and

good for you

Marketing Promotion

Copyright © 2012 Pearson Education, Inc.

15
15 -- 11
Publishing as Prentice Hall
 Promotion Mix

Direct &
Advertise
Online
ment
marketing

Sales
Public
Promotio
Relations
n

Personal
Selling

2
Copyright © 2012 Pearson Education, Inc.
15 - 2
Publishing as Prentice Hall
 Advertising

Advertising is a paid form of non-personal

presentation and promotion of ideas, goods, or
services by an identified sponsor

Copyright © 2012 Pearson Education, Inc.

15 - 3
Publishing as Prentice Hall
 TVC

Make your own !

4
Copyright © 2012 Pearson Education, Inc.
15 - 4
Publishing as Prentice Hall
 Advertising
Major Advertising Decisions

Copyright © 2012 Pearson Education, Inc.

15 - 5
Publishing as Prentice Hall
 Advertising
Setting Advertising Objectives
Informative advertising is used when introducing a new
product category; the objective is to build primary
demand
Persuasive advertising is important with increased
competition to build selective demand
Reminder advertising is important with mature products to
help maintain customer relationships and keep
customers thinking about the product

Copyright © 2012 Pearson Education, Inc.

15 - 6
Publishing as Prentice Hall
 Advertising
Developing Advertising Strategy

Advertising strategy is the strategy by which

the company accomplishes its advertising
objectives and consists of:
• Creating advertising messages
• Selecting advertising media

Copyright © 2012 Pearson Education, Inc.

15 - 7
Publishing as Prentice Hall
 Developing Advertising Strategy
Creating the Advertising Message
Advertisements need to break through the clutter:
• Gain attention
• Communicate
well

Copyright © 2012 Pearson Education, Inc.

15 - 8
Publishing as Prentice Hall
 Advertising
Creating the Advertising Message

Message strategy

Creative concept

Message execution

Copyright © 2012 Pearson Education, Inc.

15 - 9
Publishing as Prentice Hall
 Advertising
Creating the Advertising Message

Slice of life Lifestyle Fantasy

Mood or Musical Personality

image symbol

Testimonial
Technical Scientific
or
expertise evidence
endorsement

Copyright © 2012 Pearson Education, Inc.

15 - 10
Publishing as Prentice Hall
 Advertising
Selecting Advertising Media

Major steps include:

Deciding on reach-frequency-impact

Selecting media vehicles

Deciding on media timing

Copyright © 2012 Pearson Education, Inc.

15 - 11
Publishing as Prentice Hall
 Advertising
Selecting Advertising Media
Reach is a measure of the percentage of people in the
target market who are exposed to the ad campaign
during a given period of time
Frequency is a measure of how many times the
average person in the target market is exposed to
the message
Impact is the qualitative value of a message exposure
through a given medium

Copyright © 2012 Pearson Education, Inc.

15 - 12
Publishing as Prentice Hall
 Advertising
Selecting Advertising Media
Selecting media vehicles involves decisions presenting
the media effectively and efficiently to the target
customer and must consider the
message’s:
• Impact
• Effectiveness
• Cost

Copyright © 2012 Pearson Education, Inc.

15 - 13
Publishing as Prentice Hall
 Advertising
Selecting Advertising Media

When deciding on media timing,

the planner must consider:
• Seasonality
• Pattern of the advertising
– Continuity—scheduling within
a given period
– Pulsing—scheduling unevenly
within a given period

Copyright © 2012 Pearson Education, Inc.

15 - 14
Publishing as Prentice Hall
 Advertising
Evaluating the Effectiveness and Return on
Advertising Investment

Return on advertising investment =

The net return on advertising investment
The costs advertising investment

Copyright © 2012 Pearson Education, Inc.

15 - 15
Publishing as Prentice Hall
 Advertising
Evaluating the Effectiveness and Return on
Advertising Investment

Communication effects indicate whether the ad and

media are communicating the ad message well
and should be tested before or after the ad runs
Sales and profit effects compare past sales and
profits with past expenditures or through
experiments

Copyright © 2012 Pearson Education, Inc.

15 - 16
Publishing as Prentice Hall
 Advertising
Developing and Advertising Programs
Other Advertising Considerations
• Organizing for
advertising
– Agency vs. in-house
• International
advertising decisions
– Standardization

Copyright © 2012 Pearson Education, Inc.

15 - 17
Publishing as Prentice Hall
 Public relations

Copyright © 2012 Pearson Education, Inc.

15 - 18
Publishing as Prentice Hall
 Public Relations

Public relations involves building good

relations with the company’s various
publics by obtaining favorable
publicity, building up a good
corporate image, and handling or
heading off unfavorable rumors,
stories, and events
Public relations is used to promote
product, people, ideas, and activities
Copyright © 2012 Pearson Education, Inc.
15 - 19
Publishing as Prentice Hall
 Public Relations
Public relations department functions
include:
• Press relations or press agency
• Product publicity
• Public affairs
• Lobbying
• Investor relations
• Development
Copyright © 2012 Pearson Education, Inc.
15 - 20
Publishing as Prentice Hall
 Public Relations

Press relations or press agency involves

the creation and placing of newsworthy
information to attract attention to a
person, product, or service
Product publicity involves publicizing
specific products
Public affairs involves building and
maintaining national or local
community relations

Copyright © 2012 Pearson Education, Inc.

15 - 21
Publishing as Prentice Hall
 Public Relations
Lobbying involves building and
maintaining relations with legislators
and government officials to influence
legislation and regulation
Investor relations involves maintaining
relationships with shareholders and
others in the financial community
Development involves public relations
with donors or members of nonprofit
organizations to gain financial or
volunteer support
Copyright © 2012 Pearson Education, Inc.
15 - 22
Publishing as Prentice Hall
 Public Relations

The Role and Impact of Public Relations

• Lower cost than advertising

• Stronger impact on public awareness than
advertising

Copyright © 2012 Pearson Education, Inc.

15 - 23
Publishing as Prentice Hall
 Public Relations
Major Public Relations Tools

News Speeches Special events

Corporate
Written Public service
identity
materials activities
materials

Social
Buzz marketing Internet
networking

Copyright © 2012 Pearson Education, Inc.

15 - 24
Publishing as Prentice Hall
 Personal Selling

Copyright © 2012 Pearson Education, Inc.

15 - 25
Publishing as Prentice Hall
 Personal Selling

Personal selling is the interpersonal part of

the promotion mix and can include:
• Face-to-face communication
• Telephone communication
• Video or Web conferencing

Copyright © 2012 Pearson Education, Inc.

15 - 26
Publishing as Prentice Hall
 Personal Selling

Salespeople are an effective link between the

company and its customers to produce
customer value and company profit by:
• Representing the company to customers
• Representing customers to the company
• Working closely with marketing

Copyright © 2012 Pearson Education, Inc.

15 - 27
Publishing as Prentice Hall
 Managing the Sales Force

• Sales force management is the analysis,

planning, implementation, and control of
sales force activities

Copyright © 2012 Pearson Education, Inc.

15 - 28
Publishing as Prentice Hall
 Managing the Sales Force
How Salespeople Spend Their Time

Copyright © 2012 Pearson Education, Inc.

15 - 29
Publishing as Prentice Hall
 Managing the Sales Force
Selling and the Internet

Major tool to support salespeople

Sales
Training
meetings

Live sales Servicing

presentations accounts

Copyright © 2012 Pearson Education, Inc.

15 - 30
Publishing as Prentice Hall
 The Personal Selling Process
The goal of the personal selling process is to
get new customers and obtain orders from
them.

Copyright © 2012 Pearson Education, Inc.

15 - 31
Publishing as Prentice Hall
 Salesperson

Bad Traits Good traits

Pushy Late Good

Empathetic
listeners

Deceitful Disorganized Honest Dependable

Unprepared
Follow-up
Thorough
types

Copyright © 2012 Pearson Education, Inc.

15 - 32
Publishing as Prentice Hall
 Sales Promotion

Copyright © 2012 Pearson Education, Inc.

15 - 33
Publishing as Prentice Hall
 Sales Promotion
Major Sales Promotion Tools

Samples Coupons Cash refunds

Advertising
Price packs Premiums
specialties

Patronage Point-of-purchas
Demonstrations
rewards e displays

Contests Sweepstakes Games

Copyright © 2012 Pearson Education, Inc.

15 - 34
Publishing as Prentice Hall
 Firms may use a variety of sales promotion tools to help them increase
short-term sales. Choosing from the below list of possible tools, identify which
one/s would be most appropriate and least appropriate for each of the following:
•A newly launched chocolate bar
•Computer software (for editing digital photos)
•A woman’s fashion clothing store
1 A 20% discount
2 20% extra free
3 A cash-back offer (from manufacturer)
4 A two-for-one deal
5 Discount via a coupon (e.g. shop-a-docket)
6 A competition (e.g. win a PS2)
7 Extra points on a loyalty program
8 Receive a free gift (if spending more than $X)
9 Buy another product at a discount
10 Access code for special web-site
11 Give a free sample
12 © 2012 Have
Copyright PearsonaEducation,
big in-store
Inc. display
15 - 35
Publishing as Prentice Hall
 Direct Marketing

Copyright © 2012 Pearson Education, Inc.

15 - 36
Publishing as Prentice Hall
 Forms of Direct Marketing
Personal selling direct marketing

Direct-mail direct marketing

Catalog direct marketing

Telephone marketing

Direct-response television marketing

Kiosk marketing

Digital direct marketing

Online marketing
Copyright © 2012 Pearson Education, Inc.
15 - 37
Publishing as Prentice Hall
 Kiosk Marketing

Copyright © 2012 Pearson Education, Inc.

15 - 38
Publishing as Prentice Hall
 Thank you !

Copyright © 2012 Pearson Education, Inc.

15 - 39
Publishing as Prentice Hall