Ch09 L5 - Promoting

Chapter 9: Marketing: Providing
Value To Customers
Exploring Business 2.0 © 2012 Flat World

Knowledge
Chapter Objectives
1. Define the terms marketing, marketing concept, and
marketing strategy.
2. Outline the tasks involved in selecting a target market.
3. Identify the four Ps of the marketing mix.
4. Explain how to conduct marketing research.
5. Discuss various branding strategies and explain the
benefits of packaging and labeling.
6. Identify pricing strategies that are appropriate for new and
existing products.
7. Explore various product-distribution strategies.
8. Explain how companies create value through effective
supply chain management.
9. Describe the elements of the promotion mix.
Knowledge
Chapter Objectives
10. Explain how companies manage customer
relationships.
11. Describe social media marketing and identify its
advantages and disadvantages.
12. Explain how a product moves through its life cycle
and how this brings about shifts in marketing-mix
strategies.
13. Describe the external marketing environment in which
businesses operate.
14. Discuss the factors that influence consumer behavior.
15. Describe opportunities in the field of marketing.

Knowledge
Promoting A Product
Lesson 5
Exploring Business 2.0 © 2012

Flat World Knowledge
Promoting A Product – Objectives
1. Describe the elements of the promotion

mix.
Customer-Relationship Management
1. Explain how companies manage
customer relationships.
2. Describe social media marketing and
identify its advantages and
disadvantages.
Knowledge
Promotion Mix
“…various ways in which (companies)
communicate with customers…”
Including:
 advertising
 personal selling
 sales promotion
 publicity
Knowledge
Considerations Before
Selecting Promotional Strategy
 Purpose of Promotion?
– Awareness? Buy right now? Connecting with current customer?
To develop long-term customers? Promote image?
 Target Market?
– What is the best way to reach our target market?
 Product Features to Emphasize?
– Quality, price, service, availability, innovativeness
– How does product differ from competition
 Afford?
– What is our budget? How much can we spend?
 Similar to Competitors?
– How do competitors promote? Should we take similar approach?
Knowledge
Promotional Tools
Advertising
Paid, nonpersonal communication designed to
create an awareness of a product or company.
- Most prevalent form of promotion.
Personal One-on-one communication with customers or

Selling potential customers.
Sales Sales approach in which a company provides an

Promotion incentive for potential customers to buy something.
Form of promotion that focuses on getting a company

Publicity or product mentioned in a newspaper, on TV, or in
some other news media.
Communication activities undertaken by companies

Public Relations to garner favorable publicity for themselves and their
products.
Promotional Tools - Examples
Advertising
Newspapers, magazines, Yellow Pages, “Got Milk”
billboards. Google ads based on searches.
Personal Home, car, and insurance sales. Home Depot sales

Selling and do-it-yourselfers.
Sales Giveaways, free samples, money-off coupons, in-

Promotion store demonstrations, iTunes “Pick of the Week”.
Typically free. Tickle Me Elmo doll free publicity on

Publicity
Rosie O’Donnell talk show.
Company issues a press release to promote a fund-

Public Relations raising event in which they are a sponsor. Company
works to control any negative news. Surveys that
suggest commitment to social responsibility.
In-Class Activity – Promotion Strategy
Description: Your task is to develop a promotion strategy for

two products—the Volkswagen Jetta and Red Bull soda. For
each product, respond to the following questions:
•What’s the purpose of the promotion?
•What’s your target market?
•What is the best way to reach that target market?
•What product features should you emphasize?
•How does your product differ from those of competitors?
Then describe the elements that go into your promotion mix,
and explain why you chose the promotional tools that you
did.
Knowledge
Customer-Relationship
Management
What is it?
A marketing strategy that focuses on using
information about current customers to nurture
and maintain strong relationships with them.
Customers are the most important asset that
any business has, without which no company
can survive.
Key is maintaining existing customers in
addition to attracting new customers.

Knowledge
Management
To keep customers happy:
treat them well
give them what they want
listen to them
reward them with discounts and other
loyalty incentives
deal effectively with their complaints

Knowledge
Management
Discussion:
 Do you find yourself a repeat customer of
certain businesses?
 Any businesses or local stores or
restaurants treat you well?

Knowledge
Marketing-
Permission vs. Interruption
Permission
“Marketing in which companies ask customers or
potential customers for permission to contact them or
send them marketing materials.”
Mass Marketing
“…the practice of sending out messages to a vast
audience of anonymous people.”
Interruption
“Marketing that interrupts people to get their attention
(with the hope they will listen to the ad), such as TV
advertising.”
Knowledge
Social Media Marketing
“It is the practice of including social media

as part of a company’s marketing
program.”
Advantages of Social media
marketing
It enables companies to:
• Create brand awareness
• Connect with customers
• Build brand loyalty
• Offer incentives
• Gather feedback to improve products
• Let customers interact with each other
• Low cost marketing opportunities
Disadvantages?
• Time consuming, need determination and
resources to succeed
Knowledge
Consumer-Generated Content
• Consumer Involvement
– When consumers are engaged with the brand
they have a higher likelihood of purchasing
it…and telling their friends about it.
– Many advertisers use the Internet to involve

and engage consumers in their brand with
polls and other interactive techniques.
• Consumers Create Advertising.

– Frito Lay, NFL, Chevy and Chipotle Grill
have conducted advertising contests.
– Consumers create the commercial; the
winning spot is aired.
• This is a video submitted by a customer for
Chipotle Grill 30 Seconds of Fame Contest
http://www.youtube.com/watch?v=u3_VJonIDnU
• Consumers “Star” in Advertising.

– Some brands invite consumers to be a part of their
advertising by “staring” in it or submitting their own
videos to be used in the advertising, like this spot for
the Burger King Freak Out campaign.
• This is a commercial produced by Burger King
featuring real customers.
http://www.youtube.com/watch?
v=epsgsfuIN4Y&feature=related
• Consumers “Star” in Advertising.

– A series of videos produced by VW, called
The Fun Theory, captures the engagement of
consumers.
http://thefuntheory.com/
• Consumers Change Advertising.

– Consumer-generated content in the form of negative
feedback can have a powerful impact on the brand.
– This Motrin commercial touched off a high-profile
consumer-generated campaign.
– Within days of when the commercial was posted, all ads
were taken down with an apology from the company.
– This video is consumer-generated content.
http://www.youtube.com/watch?
v=wFcKhv5O4zM&feature=related
– This video is the actual commercial.
http://www.youtube.com/watch?v=XO6SlTUBA38
• Discussion Questions
– What are other examples of consumer-
generated content?
– What is the best way to avoid consumer-
generated content that is negative?
– Would you consider using consumer-
generated content as part of an advertising
campaign?
In-Class Groups – Business Plan
The Gentle Art of Self-Promotion

• How will you tell people about your product and
persuade potential customers to buy it?
• What types of advertising will you use?

Ch09 L5 - Promoting

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Chapter 9: Marketing: Providing

Exploring Business 2.0 © 2012 Flat World

Exploring Business 2.0 © 2012 Flat World

Exploring Business 2.0 © 2012

1. Describe the elements of the promotion

Personal One-on-one communication with customers or

Sales Sales approach in which a company provides an

Form of promotion that focuses on getting a company

Communication activities undertaken by companies

Personal Home, car, and insurance sales. Home Depot sales

Sales Giveaways, free samples, money-off coupons, in-

Typically free. Tickle Me Elmo doll free publicity on

Company issues a press release to promote a fund-

Description: Your task is to develop a promotion strategy for

Exploring Business 2.0 © 2012 Flat World

Exploring Business 2.0 © 2012 Flat World

Exploring Business 2.0 © 2012 Flat World

“It is the practice of including social media

– Many advertisers use the Internet to involve

• Consumers Create Advertising.

• Consumers “Star” in Advertising.

• Consumers “Star” in Advertising.

• Consumers Change Advertising.

The Gentle Art of Self-Promotion

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