Intro to BA - Sem 1 - Final

CHAPTER 10: MOTIVATING EMPLOYEES

The value of motivation:
• Intrinsic reward: Personal satisfaction felt for a job well done. It’s performed through
the sense of achievement and the pride of job’s outcomes. (được thực hiện thông qua cảm
giác đạt được thành tích và niềm tự hào về kết quả)
• Extrinsic reward: Something given as a recognition of good work, such as promotion,
pay raises, and awards. (trao để công nhận công việc tốt, như thăng chức, tăng lương…)
Taylor’s Scientific Management:
• 3 elements to increase productivity: time, methods of work, and rules of work.
• 4 key principles:
- Study how a job is performed: Gather time & motion information; Check different
methods. (cách thực hiện một công việc: Thu thập thông tin về thời gian & chuyển động)
- Codify the best method into rules. (Hệ thống hóa phương pháp tốt nhất thành các quy tắc)
- Choose workers whose skill matches the rules.
- Establish a fair level of performance and pay. (Thiết lập mức độ thực hiện công việc và trả
lương hợp lý)
➢ Time-Motion Studies -- Studies of which tasks must be performed to complete a job and the
time needed to do each task.
➢ Principle of Motion Economy -- Every job can be broken down into a series of elementary
motions; developed by Frank and Lillian Gilbreth. (Mỗi công việc có thể được chia thành một loạt
các chuyển động cơ bản)

❖ Theories of Employee motivation:

1. Motivation and Maslow Hierarchy of Need:
Hierarchy of Needs -- Theory of motivation based on unmet human needs from basic
physiological needs to safety, social and esteem needs to self-actualization needs. (những
nhu cầu chưa được đáp ứng của con người, từ nhu cầu sinh lý cơ bản đến nhu cầu an toàn, xã hội và
được tôn trọng đến nhu cầu tự khẳng định mình)
Maslow’s Hierarchy of needs:

- Physiological needs: Basic survival needs, such as the need for food, water, and shelter (nơi
trú ẩn).
- Safety needs: The need to feel secure at work and at home.
- Social needs: The need to feel loved, accepted, and part of the group.
- Esteem needs: The need for recognition and acknowledgment from others, as well as self-
respect and a sense of status or importance. (được người khác công nhận và thừa nhận, cũng như lòng
tự trọng và ý thức về địa vị)
- Self-actualization needs: The need to develop to one’s fullest potential. (phát triển hết khả năng
của mình)
2. Herzberg’s motivating factors:
Motivators -- Job factors that cause employees to be productive and that give them satisfaction.
Job hygiene factors (or maintenance factors) related to the job environment and could cause
dissatisfaction if missing but would not necessarily motivate employees if increased. (có thể gây ra
sự không hài lòng nếu thiếu nhưng sẽ không nhất thiết)

Factors of motivation:
1. Sense of achievement.
2. Earned recognition. (Được công nhận)
3. Interest in the work itself. (Bản thân hứng thú với công việc)
4. Opportunity for growth.
5. Opportunity for advancement
6. Importance of responsibility.
7. Peer and group relationships. (đồng nghiệp…)
8. Pay.
9. Supervisor’s fairness.
10. Company policies and rules.
11. Status.
12. Job security.
13. Supervisor’s friendliness.
14. Working conditions.
 3. McGregor’s Theory X and Theory Y:
Theory X: The assumptions of Theory X management are:
• The average person dislikes work and will avoid it if possible. (trốn tránh nếu có thể)
• Because of this dislike, workers must be forced, controlled, directed,
or threatened with punishment to make them put forth the effort to
achieve the organization’s goals. (phải bị ép buộc, kiểm soát, chỉ đạo hoặc đe dọa trừng phạt để họ nỗ lực
đạt được mục tiêu)
• The average worker prefers to be directed, wishes to avoid responsibility,
has relatively little ambition and wants security. (thích được chỉ đạo, muốn trốn tránh trách nhiệm,
ít tham vọng,…)
• Primary motivators are fear and punishment.
Theory Y makes entirely different assumptions about people:
• Most people like work; it is as natural as play or rest.
• Most people naturally work toward goals to which they are committed.
• The depth of a person’s commitment to goals depends on the perceived rewards for
achieving them.
• Under certain conditions, most people not only accept but also seek responsibility.
• People are capable of using a relatively high degree of imagination, creativity, and cleverness
to solve problems.
• In industry, the average person’s intellectual potential is only partially realized.
• People are motivated by a variety of rewards. Each worker is stimulated by a reward unique
to him or her (time off, money, recognition, and so on)
Empowerment: giving employees authority to make decisions and tools to implement the
decisions they make.
Steps of empowerment:
1. Find out what people think the problems in the organization are.
2. Let them design the solutions.
3. Get out of the way and let them put those solutions into action.
4. Ouchi’s theory Z:
Long-term employment, collective decision-making, individual responsibility for the
outcomes of decisions, slow evaluation and promotion, moderately specialized career paths,
and holistic concern for employees (including family). Theory Z views the organization as a
family that fosters cooperation and organizational values. (Việc làm lâu dài, ra quyết định tập thể,
trách nhiệm cá nhân đối với kết quả của các quyết định, đánh giá và thăng tiến chậm, con đường sự nghiệp
chuyên biệt vừa phải và quan tâm toàn diện đến nhân viên (bao gồm cả gia đình). Lý thuyết Z xem tổ chức như
một gia đình thúc đẩy sự hợp tác và các giá trị của tổ chức.)

5. Victor Vroom’s Theory of Expectancy:

Employees ask three questions before committing their maximum effort to a
task:
(1) Can I accomplish the task?
(2) If I do accomplish it, what’s my reward?
(3) Is the reward worth the effort?

Five steps to improve employee performance:

1. Determine what rewards employees value.
2. Determine each employee’s desired performance standard.
3. Ensure that performance standards are attainable.
4. Guarantee rewards tied to performance. (phần thưởng gắn liền với hiệu suất)
5. Be certain that employees consider the rewards adequate. ( …xem các phần thưởng thỏa đáng)
6. Reinforcement theory:
Positive and negative reinforcers motivate a person to behave in certain ways.
• Positive reinforcement includes praise, pay increases and recognition. (khen ngợi,
tăng lương và công nhận)
• Negative reinforcement includes reprimands, reduced pay, and layoff or firing.
(khiển trách, giảm lương và sa thải)
• Extinction is a way of trying to stop behavior by not responding to it. (ngăn chặn
hành vi bằng cách không phản ứng)
 CHAPTER 11: HUMAN RESOURCE MANAGEMENT
Definition: Human Resource Management -- The process of determining human resource
needs and then recruiting, selecting, developing, motivating, evaluating, compensating and
scheduling employees to achieve organizational goals. (tuyển dụng, lựa chọn, phát triển, động viên,
đánh giá, khen thưởng và lên lịch cho nhân viên để đạt được các mục tiêu)
HRM’s role has grown because:
• Increased recognition of employees as a resource.
• Changes in the law that rewrote old workplace practices. (đổi trong luật viết lại các
thông lệ cũ)
The challenges of human resources:
• Shortages of trained workers in growth areas, such as computer technology, biotechnology,
robotics, green technology, and the sciences. (Thiếu lao động được đào tạo)
• Large numbers of skilled and unskilled workers from declining industries, such as steel and
automobiles, who are unemployed or underemployed and need retraining. (Một số lượng lớn lao
động có tay nghề và không có tay nghề từ các ngành công nghiệp đang suy giảm -> thất nghiệp -> cần training
lại)
• A growing percentage of new workers who are undereducated and unprepared for jobs in the
contemporary business environment.
• A shortage of workers in skilled trades due to the retirement of aging baby boomers. (do những
người thuộc thế hệ bùng nổ dân số đang già đi nghỉ hưu)
• An increasing number of baby boomers who, due to the recession, delay retirement
(preventing the promotion of younger workers) or move to lower-level jobs (increasing the
supply of workers for such jobs). (do suy thoái kinh tế, trì hoãn việc nghỉ hưu (ngăn cản việc thăng tiến
của lao động trẻ) hoặc chuyển sang làm các công việc cấp thấp hơn)
• An increasing number of both single-parent and two-income families, resulting in a demand
for job sharing, maternity leave, and special career advancement programs for women. (nhu cầu
chia sẻ công việc, nghỉ thai sản và các chương trình thăng tiến nghề nghiệp đặc biệt dành cho phụ nữ)
• A shift in employee attitudes toward work. Leisure time has become a much higher priority,
as have flextime and a shorter workweek. (Thời gian giải trí đã trở thành ưu tiên cao hơn nhiều,)
• A severe recession that took a toll on employee morale and increased the demand for
temporary and part-time workers. (ảnh hưởng đến tinh thần của nhân viên và làm tăng nhu cầu về lao
động tạm thời và bán thời gian)
• A challenge from overseas labor pools whose members work for lower wages and are subject
to fewer laws and regulations than U.S. workers.
• An increased demand for benefits tailored to the individual yet cost-effective to the company.
• Growing concerns over health care, elder care, childcare, drug testing, workplace violence,
and opportunities for people with disabilities. (chăm sóc sức khỏe, chăm sóc người cao tuổi, chăm sóc
trẻ em, xét nghiệm ma túy, bạo lực tại nơi làm việc và cơ hội cho người khuyết tật)
• Changes through the Affordable Care Act have added a large number of new regulations that
employers must read, interpret, implement, and track. (Đạo luật Chăm sóc Giá cả phải chăng đã bổ
sung một số lượng lớn các quy định mới mà người sử dụng lao động phải đọc, giải thích, thực hiện và theo dõi)
• A decreased sense of employee loyalty, which increases employee turnover and the cost of
replacing lost workers. (tăng tỷ lệ nghỉ việc của nhân viên và chi phí thay thế nhân viên bị mất)
Laws affecting human resource management: Textbook
II. Steps of HR planning process:
1. Preparing a human resource inventory of employees. This inventory should
include ages, names, education, capabilities, training, specialized skills, and
other relevant information (such as language spoken)
2. Preparing a job analysis. A job analysis is a study of what employees do who
hold various job titles do. It’s necessary in order to recruit and train employees
with the necessary skills to do the job.
The results of job analysis:
 • Job description: specifies the objectives of the job, the type of work, the
responsibilities and duties, working conditions, and the job’s relationship to
other functions.
• Job specification: are a written summary of the minimal education and skills to
do a particular job.
=> Job descriptions are about the job, and job specifications are about the person who
does the job.

3. Assessing future human resource demand: forecasting the organization’s

requirements and training people ahead of time or ensuring trained people are
available when needed. (đào tạo nhân lực trước thời hạn hoặc đảm bảo có sẵn nhân sự được
đào tạo khi cần)
4. Assessing future labor supply. The labor force is constantly shifting: getting
older, becoming more technically oriented, and becoming more diverse. Some
workers will be scarcer in the future, like biomedical engineers and robotic repair
workers, and others will be oversupplied, like assembly-line workers. (lực lượng
lao động liên tục thay đổi: già đi, định hướng kỹ thuật hơn và trở nên đa dạng hơn. Một số công
nhân sẽ khan hiếm hơn trong tương lai, chẳng hạn như kỹ sư y sinh và công nhân sửa chữa rô-
bốt, và những người khác sẽ bị thừa cung, chẳng hạn như công nhân dây chuyền lắp ráp)
5. Establishing a strategic plan: address recruiting, selecting, training, developing,
appraising, compensating, and scheduling the labor force. (giải quyết việc tuyển
dụng, lựa chọn, đào tạo, phát triển, đánh giá, trả lương và lập lịch trình cho lực lượng lao động)

Recruiting employees:
- Recruitment -- The set of activities for obtaining the right number of qualified people at the
right time. (all hoạt động để thu hút đúng số lượng người có trình độ vào đúng thời điểm)
- Human resource managers use both internal and external sources to recruit employees.
 • Selection -- The process of gathering information and deciding who should be
hired, under legal guidelines, to fit the needs of the organization and individuals.
6 steps of selection:
• Obtaining complete application forms
• Conducting initial and follow-up interviews
• Giving employment tests
• Conducting background investigations
• Obtaining results from physical exams
• Establishing trial (probationary) work periods
• Hiring contingent workers: Contingent Workers -- Include part-time and temporary
workers, seasonal workers, independent contractors, interns, and co-op students.
III. Training and developing employees:

Training and development include all attempts to improve productivity by increasing an employee’s
ability to perform. A well-designed training program often leads to higher retention rates, increased
productivity, and greater job satisfaction.
=> Training focuses on short-term skills, while development focuses on long-term abilities.

3 Steps of training and development:

Step 1: Assessing organization needs and employee skills to develop appropriate training needs.
Step 2: Designing training activities to meet identified needs.
Step 3: Evaluating the training’s effectiveness.
Developing effective managers:
• Management Development -- The process of training and educating employees to
become good managers and tracking the progress of their skills over time.
• Management training includes:
• On-the-job coaching
• Understudy positions
• Job rotation
 • Off-the-job courses and training
6 Steps of Appraising performance:
• Performance Appraisal -- An evaluation that measures employee performance against
established standards in order to make decisions about promotions, compensation,
training, or termination.
• Steps:
1. Establishing performance standards that are understandable, measurable and
reasonable.
2. Clearly communicating those standards.
3. Evaluating performance against the standards.
4. Discussing the results with employees.
5. Taking corrective action.
6. Using the results to make decisions.

Flextime: A flextime plan gives employees some freedom to choose which hours to work, as
long as they work the required number of hours or complete their assigned tasks.
CHAPTER 13: MARKETING
Marketing -- The activity, set of institutions, and processes for creating, communicating, delivering,
and exchanging offerings with value for customers, clients, partners, and society at large.
1. 4 Eras of Marketing:
• Production Era
• Selling Era
• Marketing Concept Era:
• Customer Relationship Era: Learning as much as you can about customers and doing
what you can to satisfy or exceed their expectations.
Applying the Marketing concept era:
1. A customer orientation. Find out what consumers want and provide it for them. (Note the emphasis
on meeting consumer needs rather than on promotion or sales.)
2. A service orientation. Make sure everyone in the organization has the same objective: customer
satisfaction. This should be a total and integrated organizational effort. That is, everyone from the
president of the firm to the delivery people should be customer-oriented.
3. A profit orientation. Focus on those goods and services that will earn
the most profit and enable the organization to survive and expand to
serve more consumer wants and needs

Non-profit marketing: includes fundraising, Public Relations, Special Campaigns, Ecological

practices, Changing public opinions and attitudes, and Increasing organizational membership.

2. The marketing mix: 4Ps

1. Product: Any physical good, service, or idea that satisfies a want or need plus anything that would
enhance the product in the eyes of consumers, such as the brand.
2. Price: Pricing products depends on many factors:
Competitors’ prices
Production costs
Distribution
High or low-price strategies
3. Place: Middlemen are important in place strategies because getting a product to consumers is
critical.
4. Promotion: All the techniques sellers use to inform people about and motivate them to buy their
products or services, including advertising, personal selling, public relation, viral marketing, sales
promotions, etc.

=> Nắm kỹ cái process này

Marketing research process: Analyzing markets to determine challenges and opportunities, and
finding the information needed to make good decisions.
4 key steps of research process:
1. Defining the question (the problem or opportunity) and determining the present situation.
2. Collecting research data.
• Primary data: Data that you gather yourself (not from secondary sources such as books
and magazines) => Telephone, online, and mail surveys, personal interviews, etc (Dữ
liệu do bạn tự thu thập (không phải từ các nguồn thứ cấp như sách và tạp chí)
• Secondary data: Existing data that has previously been collected by sources like the
government. (Dữ liệu hiện có trước đây đã được thu thập bởi các nguồn uy tín)
3. Analyzing the research data.
4. Choosing the best solution and implementing it.
Focus Group -- A group of people who meet under the direction of a discussion leader to
communicate opinions.

The marketing environment:

Environmental scanning: the process of identifying factors that can affect marketing success.
Factors involved in the environmental scan include:
• Global factors
• Technological factors
• Sociocultural factors
• Competitive factors
• Economic factors
3. Market types:
1. Consumer market: All the individuals or households that want goods and services for
personal use and have the resources to buy them.
• Market segmentation: The process of dividing the total market into groups with
similar characteristics.
• Target marketing: Selecting which groups or segments an organization can serve
profitably.
=> Nắm thông tin trong bảng
Other terms:
Niche Marketing -- Identifies small but profitable market segments and designs or finds products for
them. (Xác định các phân khúc thị trường nhỏ nhưng có lợi nhuận)
One-to-One Marketing-- Developing a unique mix of goods and services for each individual
consumer (Phát triển một hỗn hợp hàng hóa và dịch vụ độc đáo)
Mass Marketing -- Developing products and promotions to please large groups of people.
Relationship Marketing-- Rejects the idea of mass production and focuses toward custom-made
goods and services for customers.
Steps in the consumer decision-making process:
• Problem recognition
• Search for information
• Evaluating alternatives
• Purchase decision
• Postpurchase evaluation
2. Business-to-business market: Individuals and organizations that buy goods and
services to use in production or to sell, rent, or supply to others. Products are often sold
and resold several times before reaching final consumers.
B2B marketers include:
• Manufacturers
• Wholesalers and retailers
• Hospitals, schools and charities
• Government
CHAPTER 14: DEVELOPING AND PRICING GOODS AND SERVICES
1. Product development
• Value: products that have good quality at a fair price.
• Product line: a group of products that are physically similar or intended for a
similar market.
• Product mix: the combination of all product lines offered by a manufacturer.
• Product differentiation: the creation of real or perceived product differences.
Marketing Different Classes of Consumer Goods and Services
1. Convenience goods and services are products the consumer wants to purchase frequently and with
a minimum of effort, like candy, gum, milk, snacks, gas, and banking services.
=> Location, brand awareness, and image are important for marketers of convenience goods and
services.
2. Shopping goods and services are products the consumer buys only after comparing value, quality,
price, and style from a variety of sellers. Target is one store that sells mostly shopping goods.
=> Marketers can emphasize price differences, quality differences, or some combination of the two.
3. Specialty goods and services are consumer products with unique characteristics and brand
identity. Examples include fine watches, expensive wine, fur coats, jewelry, imported chocolates, and
services provided by medical specialists or business consultants.
=> Because consumers perceive that specialty goods have no reasonable substitute, they put forth a
special effort to purchase them.
4. Unsought goods and services are products consumers are unaware of, haven’t necessarily thought
of buying, or suddenly find they need to solve an unexpected problem. They include emergency car-
towing services, burial services, and insurance.
Marketing Industrial Goods and Services
Industrial goods (B2B goods) are products used in the production of other products.
• Installations consist of major capital equipment such as new factories and heavy
machinery.
• Capital items are expensive products that last a long time. A new factory building is
both a capital item and an installation.
• Accessory equipment consists of capital items that are not quite as long-lasting or
expensive as installations—like computers, copy machines, and various tools.
• Supplies
• Services.
Packaging: Packages must perform the following functions:
1. Attract the buyer’s attention.
2. Protect the goods inside, stand up under handling and
storage, be tamperproof and deter theft.
3. Be easy to open and use.
4. Describe and give information about the contents.
5. Explain the benefits of the good inside.
6. Provide information on warranties, warnings, and other
consumer matters.
7. Give some indication of price, value, and uses.
2. Understanding branding
• Brand -- Name, symbol, or design that identifies the goods or services and
distinguishes them from competitors’ offerings.
• Trademark -- A brand that has exclusive legal protection for both its brand name and
design.
• Brand equity: the value of the brand name and associated symbols. Usually, a company
cannot know the value of its brand until it sells it to another company.
• Brand Loyalty -- The degree to which consumers are satisfied and are committed to
further purchases.
• Brand Awareness -- How quickly or easily a given brand name comes to mind when
someone mentions a product category.
• Consumers reach a point of brand preference when they prefer one brand over
another.
 • When consumers reach brand insistence, they will not accept substitute brands.
3. New product development process:
• Product Screening -- Reduces the number of new products a firm is working on to
focus on the most promising.
• Product Analysis -- Focuses on the cost estimates and sales forecasts to get an idea of
potential profitability.
• Concept Testing -- Takes a product idea to consumers to test reactions.
• Commercialization -- Promoting the product to distributors and retailers and
developing the promotional campaign.

*** The FOUR STAGES of a PRODUCT LIFE CYCLE

1. Introduction
2. Growth
3. Maturity
4. Decline
IV. Pricing strategy:
• Cost-based pricing measures the cost of producing a product including materials,
labor, and overhead.
• Demand-based pricing (Target Costing) -- Making the final price of a product an
input in the product development process by estimating the selling price consumers will
pay.
• Competition-Based Pricing -- A strategy based on what the competition is charging
for its products.
Using break-even analysis:
Break-Even Analysis -- The process used to determine profitability at various levels of sales. The
break-even point is where revenues equals cost.
Total Fixed Costs -- All costs that remain the same no matter how much is produced or sold.
Variable Costs -- Costs that change according to the level of production.

CHAPTER 15: DISTRIBUTING PRODUCT

1. Marketing Intermediaries -- Organizations that assist in moving goods and services
from businesses to businesses (B2B) and from businesses to consumers (B2C).
A channel of distribution consists of a whole set of marketing intermediaries, such as agents,
brokers, wholesalers, and retailers, that join together to transport and store goods in their path (or
channel) from producers to consumers.
Agents/ brokers are marketing intermediaries who bring buyers and sellers together and assist in
negotiating an exchange but don’t take title to the goods—that is, at no point do they own the goods.
A wholesaler is a marketing intermediary that sells to other organizations, such as retailers,
manufacturers, and hospitals.
A retailer is an organization that sells to ultimate consumers
=> Intermediaries perform marketing tasks faster and cheaper than most manufacturers could provide
them. Marketing intermediaries make markets more efficient by reducing transactions and contacts.

Utility -- The want-satisfying ability, or value, that organizations add to goods and services by making
them more useful or accessible to consumers. Six types of utilities:
1. Form: Changes raw materials into useful products; producers generally
provide form utility.
2. Makes products available when customers want them.
3. Time: Adds value to products by placing them where people want them.
4. Place: Helps transfer ownership from one party to another, including
providing credit.
 5. Possession: Opens two-way flows of information between marketing
participants.
6. Information: Provides service during and after a sale and teaches
customers how to best use products.
7. Service: Provides service during and after a sale and teaches customers
how to best use products.
II. Wholesale intermediaries:
A wholesale is the sale of goods and services to businesses and institutions, like schools or hospitals,
for use in the business, or to wholesalers or retailers for resale.
Types of wholesale intermediaries:
• Merchant Wholesalers -- Independently owned firms that take title to the goods they
handle. There are two types:
• Full-service wholesalers perform all distribution functions.
• Limited-function wholesalers perform only selected distribution functions. 3
types of limited-function wholesalers:
• Rack Jobbers -- Furnish racks or shelves of merchandise such as music,
magazines, and hosiery for retailers for display and sell them on
consignment.
• Cash-and-Carry Wholesalers -- Serve mostly smaller retailers with a
limited assortment of products.
• Drop Shippers -- Take orders from retailers and other wholesalers and
have the merchandise shipped from producer to buyer.
=> About 80% of wholesalers are merchant wholesalers.
• Agents and Brokers:
• Agents generally maintain long-term relationships with the clients they
represent.
• Manufacturer’s agents represent several manufacturers in a specific territory.
• Sales agents represent a single client in a larger territory.
• Brokers usually represent clients on a temporary basis.
III. Retail intermediaries:
A retailer, is a marketing intermediary, like a supermarket, that sells to ultimate consumers.

Retail Distribution Strategies:

• Intensive Distribution -- Puts products into as many retail outlets as possible including
vending machines.
 • Selective Distribution -- Uses only a preferred group of the available retailers in an
area.
• Exclusive Distribution -- The use of only one retail outlet in a given geographic area.
IV. Building corporation in channel system:
• Corporate Distribution Systems -- Exist when one firm owns all the organizations in
a channel of distribution.
• Contractual Distribution Systems -- Exist when members are bound to cooperate
through contractual agreements.
• Administered Distribution Systems -- Exist when producers manage all the marketing
functions at the retail level.
• Supply Chain -- All the linked activities various organizations must perform to move
goods and services from the source of raw materials to ultimate consumers.
• Supply Chain Management -- The process of managing the movement of raw
materials, parts, work in progress, finished goods, and related information through all
the organizations in the supply chain.

V. Logistic:
Logistics -- The planning, implementing and controlling of the physical flow of material, final goods
and related information from points of origin to points of consumption.
Inbound Logistics -- Brings raw materials, packaging, other goods and services and information
from suppliers to producers.
Materials Handling -- Movement of goods within a warehouse, from warehouse to the factory floor
and from the factory floor to workstations.
Outbound Logistics -- Manages the flow of finished products and information to business buyers
and consumers.
Reverse Logistics -- Brings goods back to the manufacturer because of defects or for recycling.
Other terms:
• Storage warehouses hold products for a relatively long period of time.
• Distribution warehouses are used to gather and redistribute products such as: Beer and
soft drinks Package deliveries
CHAPTER 16: USING EFFECTIVE PROMOTION
1. Promotion and the promotion mix:
Integrated Marketing Communication (IMC) -- Combines the promotional tools into one
comprehensive strategy. IMC is used to: Create a positive brand image. Meet the needs of consumers.
Meet the strategic marketing and promotional goals of the firm.
Steps of promotion campaign:
1. Identify a target market
2. Define objectives
3. Determine a promotional budget
4. Develop a unifying message
5. Implement the plan
6. Evaluate the plan
Promotion Mix -- The combination of promotional tools an organization uses; the traditional mix
includes:

1. Advertising:
Advertising is paid, nonpersonal communication through various media by
organizations and individuals who are in some way identified in the message.
Identification of the sender separates advertising from propaganda, which is
nonpersonal communication that does not have an identified sponsor.
=> Outcomes: Inform Persuade Remind

2. Personal selling:
Personal Selling -- The face-to-face presentation and promotion of a product, including
the salesperson’s search for new prospects and follow-up service.
 Steps in the B-2-B selling process:
1. Pre-approach
2. Approach
3. Make a presentation
4. Answer objections
5. Close the sale
Trial Close -- A statement or question that moves the process toward the
purchase.
6. Follow up
Steps in the B-2-C selling process:

3. Public relations:
• Public Relations (PR) -- Evaluates public attitudes, changes policies and procedures
in response to the public, and executes a program of action and information to earn
public understanding and acceptance.
• 3 steps of a good PR program:
• Listen to the public
• Change policies and procedures
• Inform people you’re responsive to their needs
Publicity: Any information about an individual, product or organization that’s distributed to the
public through the media and is not paid for or controlled by the seller.
Advantages of Publicity:
• Free
• Reaches people who would not look at an advertisement
• More believable than advertising
Disadvantages of Publicity:
• No control over whether the media will use a story or when they may release it.
• It can be good or bad.
• Once a story has been run, it isn’t likely to run again.
4. Sales promotion:
Sales Promotion -- The promotional tool that stimulates consumer purchasing and dealer interest by
means of short-term activities.
Categories of Sales Promotions:
• B2B Sales Promotions
• Consumer Sales Promotions
 Other tools:
• Word-of-Mouth Promotion -- People tell others about products they have
purchased. Word-of-Mouth is important for products like: Restaurants, Daycare
and Eldercare, Car Repair Shops, Hair Stylists, Hotels
• Viral Marketing -- Paying customers to say positive things on the Internet or
setting up multiple selling schemes whereby consumers get commissions.
• Blog -- Short for web log; an online diary that looks like a webpage but is easier
to create and update by posting text, photos, videos, or links.
• Podcasting -- A way to distribute audio and video programs via the Internet.
• Email promotions increase brand awareness among commercial suppliers.
Promotional strategies:
Push Strategy -- Producers use advertising, personal selling, sales promotion, and other tools to get
their products stocked on shelves.
Pull Strategy -- Directs heavy advertising and sales promotions efforts towards consumers and gets
the public to request their products from retailers.
Pick Strategy -- Refers to consumers who pick out their products from online outlets.