Introduction to Marketing

Lecture 11

Course Instructor: Gaukhar Turganbekova

 PROMOTION
• Advertising
• Sales promotion
• Personal selling
• Public relations (PR)
Promotion mix
(marketing communications mix)
– the specific mix of promotion tools that the
company uses to persuasively communicate
customer value and build customer relationships.

Integrated marketing
communications (IMC) –
carefully integrating
and coordinating
the company’s many
communications channels
to deliver a clear, consistent,
and compelling message
about the organization
and its products.
 Advertising
Any paid form of nonpersonal presentation and promotion
of ideas, goods, or services by an identified sponsor.

Major advertising decisions:

1. Setting (communication/sales) objectives – specific
communication task to be accomplished with a specific target
audience during a specific period of time. By objectives,
advertising can be classified as informative, persuasive
(comparative/attack advertising) and reminder.
2. Setting budget (affordable, percentage-of-sales, competitive-
parity, objective-and-task methods).
3. Developing strategy: creating advertising messages (styles:
slice of life, lifestyle, fantasy, mood or image, musical, personality
symbol, technical expertise, scientific evidence, testimonial
evidence or endorsement) and selecting advertising media (TV;
digital, mobile, SM; newspapers; direct mail; magazines; radio;
outdoor).
4. Evaluating (communication/sales and profit impact, ROI)
 Comparative advertising
Samsung Galaxy ads have
long unabashedly bashed
Apple’s iPhone. Over the
past decade, in one
campaign after another,
Samsung ads have
featured direct
comparisons of its phones
to Apple’s. The ads smugly
depict iPhone owners as
either disappointed in their
phones by comparison or
secretly envious of people
using the latest Galaxy
model. “When it comes to
the way Samsung is
marketing its new devices,”
say an analyst, “it appears
to be fixated on just https://youtu.be/6h5JSojJN3Y
bashing Apple.”
 Public Relations
Activities designed to engage the company’s various
publics and build good relations with them. PR uses tools
such as news, special events (PR campaigns), written
materials, videos, corporate identity materials, public service
activities.

Functions of PR:
- Press relations or press agency. Creating and placing newsworthy
information in the news media to attract attention to a person, product,
or service.
- Product and brand publicity. Publicizing specific products and brands.
- Public affairs. Building and maintaining national or local community
relationships.
- Lobbying. Building and maintaining relationships with legislators and
government officials to influence legislation and regulation.
- Investor relations. Maintaining relationships with shareholders and
others in the financial community.
- Development. Working with donors or members of nonprofit
organizations to gain financial or volunteer support.
 PR campaign

WestJet brought that feeling

of magic to children and
adults alike, and that’s what
made its “Christmas Miracle”
PR campaign so great. It
aimed to get 200,000
YouTube views with the video;
in reality, the video went on to
accumulate more than 27
million views in one week. The
entire PR stunt required 175
WestJet employees to pull off.
The teams ultimately wrapped
357 gifts. As expensive as this
sounds, it really wasn’t.
Planning is what made this
PR stunt possible. https://youtu.be/zIEIvi2MuEk
 Personal Selling
Personal presentation by the company’s sales force
to engage customers, make sales, and build
customer relationships.

Major steps in sales force management:

1. Designing sales force strategy and structure
2. Recruiting and selecting salespeople
3. Training salespeople
4. Compensating salespeople
5. Supervising and motivating salespeople
6. Evaluating salespeople and sales force performance

Steps in selling process

 Sales Promotion
Short-term incentives to encourage the purchase or sale of a
product or a service.

Major steps of developing a sales promotion program:

- Setting promotion objectives. Such as: consumer promotions to urge short-
term customer buying or boost customer-brand engagement; trade promotions to
get retailers to carry new items and more inventory, buy ahead, or promote the
company’s products and give them more shelf space; business promotions to
generate business leads, stimulate purchases, reward customers, and motivate
salespeople.
- Selecting tools. Such as: consumer promotions (from
samples, coupons, refunds, premiums, and point-of-
purchase displays to contests, sweepstakes, and event
sponsorships); trade promotions (consumer promotion tools,
discounts, allowance, specialty advertising items, free
goods, push money), business promotions (consumer or
trade promotion tools, conventions and trade shows, sales
contests).
- Developing sales promotion program – deciding on size
of incentive; conditions for participation, promotion and
distribution, evaluation.