Chapter 16
Using Effective
Promotions
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
PROMOTION
in an ORGANIZATION
• Promotion Mix -- The combination of promotional
tools an organization uses. The traditional mix
includes:
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ADVERTISING
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ADVERTISING in the FIRM
• Advertising -- Paid, nonpersonal communication
through various media by
organizations and individuals
who are in some way
indentified in the message.
• Major goals of advertising:
- Inform
- Persuade
- Remind
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POPULAR ADVERTISING MEDIA
• TV advertising is still the dominant media.
• Digital Video Recorders (DVRs) challenge TV
advertising because viewers can skip ads.
• Product Placement -Advertisers pay to put
their products into TV
shows and movies where
the audience will see
them.
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INFOMERCIALS and
ONLINE ADVERTISING
• Infomercial -- A full length TV program devoted
exclusively to promote a particular product.
• Online Ads are attempts to get potential customers
to a web site to learn about a product.
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ADVERTISING GLOBALLY
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GLOBAL ADVERTISING STRATEGY
• Globalism requires
marketers to develop a
single product and
promotional strategy to
implement worldwide.
• Problems can arise in
global markets with using
one advertising campaign
in all countries - especially
bad translations.
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REGIONAL ADVERTISING STRATEGY
• Regionalism – specific
ads for each country or for
specific groups within a
country. (most effective)
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PERSONAL SELLING
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PERSONAL SELLING
• Personal Selling -- The face-to-face presentation
and promotion of a product, including the
salesperson’s search for new prospects and followup service.
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PROSPECTING and QUALIFYING
in SELLING
• Prospecting -- Researching potential buyers and
choosing those most likely to buy.
• Qualifying -- Making sure
customers have a need for a
product, the authority to buy
and the willingness to listen to
a sales message.
• Prospect -- A customer who
meets the qualifying criteria.
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STEPS in the B2B SELLING PROCESS
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
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STEPS in the B2C
SELLING PROCESS
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SALES PROMOTIONS
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SALES PROMOTIONS
• Sales Promotion -- The promotional tool that
stimulates consumer purchasing and dealer interest
by means of short-term activities.
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SOME KEY
CONSUMER SALES PROMOTIONS
• Coupons
• Demonstrations
• Sampling
• Sweepstakes
• In-store Displays
• Contests
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USING PUBLIC RELATIONS
in PROMOTION
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USING PUBLIC RELATIONS in
PROMOTION
• 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:
1) Listen to the public
2) Change policies and procedures
3) Inform people that organization is responsive to their
needs
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PUBLICITY
• 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.
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ADVANTAGES of PUBLICITY
• Free
• Reaches people who
would not look at an
advertisement
• More believable than
advertising
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DISADVANTAGES of PUBLICITY
• No control over whether the
media will use a story or when
they may release it.
• Once a story has been run, it is
not likely to run again.
• There is such a thing as bad
publicity.
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PULL, PUSH, PROMOTIONAL
STRATEGIES
 Heavy advertisements and
sales promotion efforts
 Directed at consumers so
that they will request the
products from retailers
 Products are pulled down
through the distribution
system
 Convince wholesalers and
retailers to stock and sell
 Producer uses trade
discounts, personal
selling, cooperative
advertising to convince
the intermediaries
 Idea is to push the
product through the
distribution system to the
stores
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USING WORD-of-MOUTH
PROMOTION
• 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
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