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 Advertising Publicity Sales Promotion Mass Selling

Chpt 13 in the Marketing 106 course

Copyright, Professor W.T.G. Richardson, Seneca College

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 Copyright, Professor W.T.G. Richardson, Seneca College

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, Professor W.T.G. Richardson, Seneca College

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, Professor W.T.G. Richardson, Seneca College

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, Professor W.T.G. Richardson, Seneca College

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, Professor W.T.G. Richardson, Seneca College

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, Professor W.T.G. Richardson, Seneca College

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, Professor W.T.G. Richardson, Seneca College

Promotion

Slide 10

Promotion People
Sales Managers Advertising Managers Sales Promotion Managers

Chpt 13 in the Marketing 106 course

Copyright, Professor W.T.G. Richardson, Seneca College

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

Copyright, Professor W.T.G. Richardson, Seneca College

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, Professor W.T.G. Richardson, Seneca College

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, Professor W.T.G. Richardson, Seneca College

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 Copyright, Professor W.T.G. Richardson, Seneca College

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 Copyright, Professor W.T.G. Richardson, Seneca College

Promotion

Slide 16

Chpt 13 in the Marketing 106 course

Copyright, Professor W.T.G. Richardson, Seneca College

Promotion

Slide 17

Relationship between Advertising and the Product Life Cycle

Not mentioned in your textbook

Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College

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

Page 458 - 459

Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College

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
Page 458 - 459
Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College

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, Professor W.T.G. Richardson, Seneca College

Promotion

Slide 21

Chpt 13 in the Marketing 106 course

Copyright, Professor W.T.G. Richardson, Seneca College

Promotion

Slide 22

Pushing through the promotion channel

Producer personal selling 2 wholesaler retailer customer

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 Copyright, Professor W.T.G. Richardson, Seneca College

Promotion

Slide 23

Pulling through the promotion channel

Producer personal selling 2 wholesaler retailer customer

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 Copyright, Professor W.T.G. Richardson, Seneca College

Promotion

Slide 24

Pulling through the promotion channel

Producer personal selling 2 wholesaler retailer customer

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

Copyright, Professor W.T.G. Richardson, Seneca College

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 Copyright, Professor W.T.G. Richardson, Seneca College

Promotion

Slide 26

Comparison of Direct Marketing and General Advertising

Direct Marketing Selling to individuals. Customers are often identifiable by name, address, and purchase behaviour. Products have added value or service. Distribution is important product benefit. The medium is the marketplace. Marketer controls product until delivery. Advertising used to motivate an immediate order or inquiry. General Advertising Mass selling. Buyers identified as broad groups sharing common demographic and psychographic characteristics. Product benefits do not always include convenient distribution channels. Retail outlet is the marketplace. Marketer may lose control as product enters distribution channel. Advertising used for cumulative effect over time to build image, awareness, loyalty, benefit recall. Purchase action deferred. Repetition used over time. Consumers feel less risk have direct contact with the product and direct recourse. Not in your text
Copyright, Professor W.T.G. Richardson, Seneca College

Repetition used within ad. Consumers feel high perceived risk product brought unseen. Recourse is distant.
Chpt 13 in the Marketing 106 course

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 Copyright, Professor W.T.G. Richardson, Seneca College

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 Copyright, Professor W.T.G. Richardson, Seneca College

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, Professor W.T.G. Richardson, Seneca College